Dominixe
11-27-2008, 03:32 PM
This is a very long article, but well worth the read. It tells the background behind the Financial Meltdown and Wall Street.
The End of Wall Street's Boom (http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom/)
I don't understand all of the details of the story, but I get the main points:
Greed and over-leveraging (excessive risk-taking) by the five major Wall Street investment banks is at the heart of the Financial Meltdown.
The investment bankers from the traders to the CEO basically don't know what they are doing, yet they get paid hundreds of thousands to millions of dollars to dispense investment advice.
If you want to know what these Wall Street firms are really worth, take a hard look at the crappy assets they bought with huge sums of borrowed money, and imagine what they'd fetch in a fire sale. The vast assemblages of highly paid people inside the firms were essentially worth nothing.Here is another quote from the article:
This woman wasn't saying that Wall Street bankers were corrupt. She was saying that they were stupid. These people whose job it was to allocate capital apparently didn't even know how to manage their own.As an independent business person I come across quite a few shady characters. These guys are absolute lying scumbags. They should all be fired and required to pay retribution for their mismanagement.
Dominixe
The End of Wall Street's Boom (http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom/)
I don't understand all of the details of the story, but I get the main points:
Greed and over-leveraging (excessive risk-taking) by the five major Wall Street investment banks is at the heart of the Financial Meltdown.
The investment bankers from the traders to the CEO basically don't know what they are doing, yet they get paid hundreds of thousands to millions of dollars to dispense investment advice.
If you want to know what these Wall Street firms are really worth, take a hard look at the crappy assets they bought with huge sums of borrowed money, and imagine what they'd fetch in a fire sale. The vast assemblages of highly paid people inside the firms were essentially worth nothing.Here is another quote from the article:
This woman wasn't saying that Wall Street bankers were corrupt. She was saying that they were stupid. These people whose job it was to allocate capital apparently didn't even know how to manage their own.As an independent business person I come across quite a few shady characters. These guys are absolute lying scumbags. They should all be fired and required to pay retribution for their mismanagement.
Dominixe