Double Bubble

The Washington Post has a good review of George Soros's take on the credit bubble.

One of his his suggestions is...

"The complex securities that are traded "over the counter" between banks, hedge funds and other players must be brought wherever possible onto exchanges, because this will reduce the pressure on the Fed to stage rescues. Bear Stearns was not too big to fail; it was, as The Economist has said, too entangled to fail: Its bankruptcy would have stranded holders of billions of dollars of its securities with nobody on the other side of their contracts. When trading moves onto an exchange, the exchange itself guarantees the contract. One impetus to Fed rescues can thus be neutralized."

The full article can be found here.

His book can be found here.