Making people and ideas findable
Wall Street issues report, concludes: "Oops! Our bad!
OK, quit laughing.
According to the article:
http://www.nytimes.com/…
"Wall Street failed to anticipate how wide-reaching problems with mortgage bonds would spread into seemingly distant corners of the financial markets, the report said. Awash in easy money, banks doled out credit without sufficiently charging for the risk. Wall Street also created complex structures that masked connections between asset classes as well as compensation incentives that pushed traders to take risky steps for short-term gain. The industry’s failings have now translated into pain for the broader economy, the report said."
Ya’ think?
The article goes on to make what I see as a claim so based in a combination of arrogance and cluelessness as to stagger the mind.
"In a cover letter to Treasury Secretary Henry M. Paulson Jr., the group attributed some of the crisis to human psychology.
“The root cause of financial market excesses on both the upside and the downside of the cycle is collective human behavior — unbridled optimism on the upside — and fear — bordering on panic — on the downside,” the letter said. The panic underlying the collapse of the investment bank Bear Stearns was clearly on the minds of executives as they worked on the report."
So, it’s OUR fault that we buy into the marketing that Wall Street sells us that we can be millionaires by investing the “right” way? It’s OUR fault that we panic when we see our retirement nest egg shrinking away and want to do something to stop it? It’s OUR fault that Wall Street’s unbridled greed grew even larger when they discovered the loophole that made predatory lending legal, thus bringing in billions more in fees and commissions? It’s OUR fault that regulations are not strong enough to prevent Wall Street from taking advantage of the general population that is just trying to have a secure future and own their own home?
It reminds me of the scene in the movie “Wolf” where Jack Nicholson has Michelle Pfeiffer lock him in a cage so when he turns into a wearwolf, he doesn’t hurt anyone. “Please regulators, lock us in a cage before we convince more people to trust us with their money!”
We make the point in “Crazyman’s Economics” (http://www.crazymanseconomics.com) that one of the reasons Wall Street has been able to con people out of their money time-and-time again is that they convince us that when we lose money, it’s OUR fault because we didn’t make the right decision. The quote above says the same thing.
"The report suggests that the industry create a way to close-out trades, should another major financial player face trouble. It also said the markets may be more “accident prone” because of new ways of doing business like Wall Street’s loan packaging, in which banks that originate loans to consumers then repackage them to sell to investors. And it listed the ability to make bets against credit — a trade that made some investors rich — as a possible cause of market instability."
I’ll add another old and out-dated pop-culture reference when I say this reminds me of the old Steve Martin bit where he says the use of the words “I forgot” is a great way to avoid responsibility: “I’m sorry, I forgot that robbing a bank was a crime.”
The report should have said: “We’re sorry, we forgot that issuing billions of dollars with no way to repay them was wrong.”
"Mr. Corrigan said he knows the report presents a challenge, but that Wall Street firms need to adopt more of a spirit of “financial statesmanship.”
If ever two terms don’t belong together, it’s “Wall Street” and “Financial Statesmanship.” It’s like linking “Professor” and “Paris Hilton.” Never happen. Ever.
I don’t know what this so-called “report” was supposed to achieve, except that certain media types (*cough* Jim Cramer *cough*) will hail this as a new beginning and a sign that Wall Street is concerned with doing the right thing.
Don’t believe it. Not even for a second.
Please buy our book, join our cause, and let’s make sure Wall Street doesn’t continue to get away with this!
http://www.crazymanseconomics.com
Tags: crazymans, economics, goldman, lynch, merrill, new, report, sachs, street, times
Add a Comment
Groups
-
Indy Business Book Club
99 members
-
Purple Cows
59 members
-
Naptown Architours
22 members
-
100 Black Men of Indianapolis
12 members
-
Indiana Filmmakers
86 members
-
Smaller Food Indiana
230 members
-
Social Media Marketing
116 members
-
Greener Indiana
233 members
-
Apple User's Group
149 members
-
Web Development in Indiana
246 members
Forum
Social Media Etiquette 1 Reply
I just found this blog entry on social media etiquette. It's got some pretty good tips and I thought I'd share it. After reading, if you have any additional pointers, feel free to include them! 1....
Tagged: tips, etiquette, media, social
Started by Nicki Laycoax in Education. Last reply by David Mark 4 hours ago.
Rockstar Social Networking Designer-Programmer Wanted! 2 Replies
We are in the process of starting a social networking site for nonprofits in rural Illinois...and are interested in finding an experienced, motivated designer-programmer in Drupal, Joomla or phpsym...
Tagged: symphony, php, joomla, drupal
Started by Annie Hernandez in Classifieds - Help Wanted. Last reply by Will Hardison 5 hours ago.
Inside Sales - Lead Generator for Biotech Firm
I am working on an Inside Sales Position - Lead Generator position for one of my Biotech Clients. It is a great opportunity for someone with 1+ years of experience in sales. Preference given to Bio...
Tagged: job, career, chemistry, biology, sales
Started by Tracey Bates in Classifieds - Help Wanted 9 hours ago.
Does anyone know what Indy.com the Magazine is? 6 Replies
I just filled out the Smaller Indiana media use questionnaire and I noticed that one of the local media options is "INtake Weekly," which was re-christened Indy.com the Magazine in fall of 2007. I ...
Started by NealTaflinger in Questions and Answers. Last reply by Danielle Smith 2 hours ago.
Seeking a WebMaster for immediate opportunity
First, we aren't afraid to go "1990s style" and use the word "webmaster"...as that is exactly what we are looking for - someone to own our on-line presence. Rising Media is one of the most establi...
Started by Angel Morales in Classifieds - Help Wanted 13 hours ago.
Systems Administrator Needed!
John Krull 317-872-4960 jkrull@pyramidsgroup.com Are you seeking a position within an organization that will provide you with the sense of accomplishment? Are you looking for a company that has a ...
Tagged: technical, IT, career, job
Started by John Krull in Classifieds - Help Wanted 13 hours ago.
Will Facebook Group help Smaller Indiana grow? 12 Replies
In an experimental effort to help Smaller Indiana grow, Matt Theobald, has launched an SI group inside Facebook . Matt says inside Facebook there are 210,000 people from Indianapolis alone, not cou...
Tagged: indiana, smaller, facebook
Started by Pat Coyle in Media. Last reply by Ben McCann 51 minutes ago.
Know any fabulous women? It's time for the fifth annual Torchbearer Awards: Indiana's Salute to Women
(from an email I received, just helping get the word out) Please help find award winners for 2009! Each year in celebration, the Indiana Commission for Women (ICW) honors exceptional women who ha...
Started by Emily Myers in Events for the creative class 15 hours ago.
Live Music for your Christmas Party
How about having a live piano/keyboard player playing Christmas Carols during your Business or Home Christmas Party? I play all types of songs - Secular and Sacred. I have my own keyboard and speak...
Tagged: Parties, Reception, Party, Keyboard, Piano
Started by Jack Kirkland in Classifieds - blatant self promotion 1 day ago.
Virtual Assistant - Would you or your company use one? 3 Replies
An acquaintance of mine suggested I look into becoming a virtual assistant. He felt that with the skill and experience I have, I could definitely excel at doing something like this. I wanted to po...
Started by Lorin Lambert in Questions and Answers. Last reply by Kyle Lacy 16 hours ago.
Indiana Filmmakers activity
I'm new to the group and would like to become an active member. Where do I go to get information on meetings, activities, organization, etc.
Started by Larry Welke in Face to Face meetings and encounters 1 day ago.
Seeking Walkability Advocates: What's Your Community Score?
The Waynedale Green Alliance is in the process of performing a project known as Indiana Walk Scores. WE are seeking those who would like to do a short interview about the walkability of their comm...
Tagged: planning, community, building, city, scores
Started by A Brewster Smythe in Events for the creative class 1 day ago.
For the sake of NOSTALGIA! 1 Reply
Here's a little quiz to see how much you remember about some less-than-important things from a few decades back. It's just for fun. Even the wrong answers may bring back a memory or two. Have Fun (...
Started by Cissi Sherlock in Events for the creative class. Last reply by Dennis Beeson 14 hours ago.
Graduate Student seeking Multimedia Position in Indianapolis
Hello all, My name is Matt Wohlstadter and I am a very passionate digital artist. I currently reside here in Indianapolis and I am looking for a full time job as a digital artist/multimedia develo...
Started by Matt Wohlstadter in Classifieds - New Graduates Seeking First Jobs (2008) Nov 29.
Finding a place to play in the winter. 2 Replies
I play a game called Amtgard...we are a live action fantasy role playing group...In the warmer months we play at the local parks and that's fine, but in the cold months, well...its cold and snowy. ...
Tagged: Amtgard
Started by Serra Head in Sports. Last reply by Theresa Browning Nov 29.
Indiana Loses $1.5 Billion Coal Project 9 Replies
Successful business leaders and businesses always look to the future. They do not impose emotion but make sound judgement decisions that impact their business and customers. This latest news that h...
Started by Steve Stuck in Politics. Last reply by Steve Stuck 1 day ago.
Beautiful Office Space Available on the North Side 1 Reply
SpinWeb has some extra office space that is not in use and I would like to rent it to a Smaller Indiana member looking for a great deal on beautiful office space. There are 4 sections in our office...
Started by Michael Reynolds in Classifieds - Help Wanted. Last reply by Nicki Laycoax 13 hours ago.
What is your dream? Are you trying to live it? 9 Replies
When you were growing up what did you hope to become? What is your childhood dream? What is your grown-up dream? In my childhood dreams I wanted to be a mom with at least six kids, travel all over...
Started by Sarah Brown in Questions and Answers. Last reply by Danielle Smith 2 hours ago.
Opinions on Indiana's Interstate Airline Commerce 2 Replies
Hey Folks, I was curious what other thoughts might be out there as to Indiana’s airline infrastructure; specifically, with the demise of ATA earlier this year, do you all think that Indiana will e...
Tagged: commerce, airline, interstate, indiana, airlines
Started by Christopher Allen in Events for the creative class. Last reply by Christopher Allen Nov 29.
Are you spending money or quality time on Black Friday? 8 Replies
Are you back at work today? Or are you out there amongst the Black Friday throng looking for bargains on Chia Pets? Or do you prefer nursing your Turkey hangover? Share your post Thanksgiving stori...
Tagged: black-friday
Started by Pat Coyle in Questions and Answers. Last reply by Amy Magan 16 hours ago.
© 2008 Created by Pat Coyle
You need to be a member of Smaller Indiana to add comments!
Join this network