Wall street: inside the collapse

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investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
Wall street: inside the collapse

Wow! And from mainstream media to.

http://www.cbsnews.com/stories/2010/03/12/60minutes/main6292458.shtml

land2341's picture
land2341
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Joined: Aug 20 2009
Posts: 402
Re: Wall street: inside the collapse

Don't forget Scott Patterson's  The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It

 

There are many Wall Street autopsy reports,  but I think the Quants and The Big Short are probably the better of them.

John99's picture
John99
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Joined: Aug 27 2009
Posts: 490
Re: Wall street: inside the collapse

Good show, but he says, 'that most wall street insiders didn't really know what was going on'.

The 2,200 page report on Lehman Brothers, released on Friday would suggest otherwise. Blatant fraud by the insiders and Ernst and Young, their accountants:

http://www.msnbc.msn.com/id/21134540/vp/35841681/#35841681

CB's picture
CB
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Joined: Mar 18 2008
Posts: 365
Re: Wall street: inside the collapse

A little OT, but...

Can someone explain to me how the Lehman Bros 'repo' scam is materially different than the way nearly the entire banking industry has been allowed to hide failed assets by setting aside mark to market rules and allowing significant portions of their portfolios to be carried off balance sheet? The whole industry seems to be in on the game and who's dirty laundry gets aired merely a political decision of what is the minimum necessary to sacrifice in order to keep scam running for the next few years (or months). The failure of Lehman allowed all of the 'exceptional measures' taken to transfer private risk to the public across the industry, including allowing investment banks like Goldman to change their status so they too could suck off the public teat.

Is this really so hard for the public commentators to grasp? The media seems invariably to feed only bits, scraps and gossip rather than acknowledging the systemic rot - which serves to deflect attention from the pervasiveness and complicity at all levels that was/is a necessary element of the system.

Hanging a few Lehman execs out to twist and writhe in the public eye will do nothing substantive and lead to no effective reform. Failure to grasp the fundamental nature of the problem can only lead to ineffective action.

Michael Lewis seems hesitant to assign blame with the excuse that everyone was just blinded by greed - the string huge of failures since the 90s makes this a little hard to swallow.  It seems to me that those on the upper levels on the inside simply played everyone willing for fools, spreading just enough of the profit around between the political class and their own employees to prevent the scams from being effectively analyzed and addressed by anyone with the political power to take effective action - in addition to completely dominating/co-opting/infiltrating the regulators charged with oversight.

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