To model correctly one tranche of one CDO took about three hours on one of the fastest computers in the United States. There is no chance that pretty much anybody understood what they were doing with these securities. Creating things that you don't understand is really not a good idea no matter who owns it.
Over time, all of the markets should be combined.
Regulators are in the best position to regulate when they are intimately knowledgeable about the activities they are regulating.
I think there will be linkages between the U.S. and Europe and I think there will be linkages between the U.S. and Asia; that is probably a little further off.
