I have one modest proposal, therefore. I suggest that every firm that promotes investments while hedging against them be required to post a large, boxed message on the front page of every offering:

    This firm is attempting to sell investors an instrument that has such dramatic associated risks attached to it that we are, at the same time, hedging our bets in a significant fashion. In fact, we stand to make more money, both as a firm and personally, if this investment fails. We thought you should know.

    I wonder it that would do a lot more to influence sales than 8-point type on page 87. It would certainly crimp one side of the conversation or the other, I’m pretty sure.

    On the other hand, we could make it illegal to play both sides of a transaction, both selling and hedging against the same vehicle in a manner than would be outlawed at any racetrack or arena in the world. But we won’t.

    That would be un-American.