Economics of Contempt: Apparently commentators are upset because the administration's financial reform proposal only requires "standardized" derivatives to be cleared through central counterparties (CCPs), and not bespoke derivatives. James Kwak even questions "why we need customized derivatives in the first place." He claims he can't even think of an example of when a firm would legitimately need to use a bespoke derivative. Umm, how about...

via Alea