Here is Gretchen Morgenson on why credit default swaps need regulation, and why U.S. taxpayers are still on call to bail out banks who deal in them.USING these instruments in a way that intentionally destabilizes a company or a country is is counterproductive, and Im sure the S.E.C. will be looking into that."Thats what Ben S. Bernanke, chairman of the Federal Reserve, said last week when lawmakers asked him about credit default swaps during his Congressional testimony. Concerns are growing about such swaps securities that offer insurance-like protection and helped tip over the American International Group in 2008 when it couldnt pay mounting claims on the contracts."Now, there are fears that the use of these swaps may also help propel entire countries think Greece to the precipice..... ... And now it appears that some traders are using swaps to bet that Greece wont be able to meet its debt payments and will face a possible default."Mr. Bernanke is undoubtedly an intelligent man. But his view that its counterproductive to use credit default swaps to crash an institution or a nation exhibits a certain navet about how the titans of finance operate now."http://www.nytimes.com/2010/02/28/business/economy/28gret.htmlHere's Paul Krugman in Monday's Times on the travails of financial reform legislation: http://www.nytimes.com/2010/03/01/opinion/01krugman.html?ref=opinionAnd Robert Reich goes ballistic on the Dems betrayal of their base: http://tpmcafe.talkingpointsmemo.com/2010/03/01/the_enthusiasm_gap/#more..."Much of the reason for the Democrats' astonishing reluctance to place blame where it belongs rests with big business's and Wall Street's generous flows of campaign donations to Dems, coupled with their implicit promise of high-paying jobs once Democratic officials retire from government. This is the rot at the center of the system. And unless or until it's remedied, it will be difficult for the President to achieve any "change you can believe in.".....