First they geek net out about 40% of OTC derivatives, not knowing the credit conditions of the counterparties to these net outs. Apparently winning and losing does not count. Performance ability of a special performance contract counts less.
After that they declare there is no problem with OTC derivatives due to some magic wand of computer technology that forgets about insolvency, taking notional value to real value and expressing the risks inherent in all OTC derivatives as miniscule compared to notional. If these risks are so small what is all the hubbub about?
Truth in statistics simply does not exist in an amoral world where deceit is a virtue and the most successful predator is the person to be admired. It is a world of takers and destroyers, not givers and builders.
The ability to get an honest number on OTC derivatives no longer exists.
Treat the symptoms and hide the problem is the formula for destruction, not correction.