How the Lehman Brothers' Greed Affects You
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McCain Attacks Wall Street Greed - While 83 Wall Street Lobbyists Work for His Campaign. See the list here
By Matthew Bretherton
Published on 17 Sep 2008
Don't shed too many tears for Lehman Brothers and their ilk, but do look at the bigger picture...
The news of Lehman Brother's collapse sent stock markets around the world tumbling in scenes eerily reminiscent of the 1920s. But we shouldn't feel too sorry for them. It was, after all one of the very institutions that spent the last few years engaged in precisely the kind of high risk tactics that have brought us to the perilous position we find ourselves in today.
Lehman et al have been engaged in a feeding frenzy of greed for decades, ever since the Thatcher/Reagan axis removed market controls that were put in place specifically to prevent the kind of insane risk taking that precipitated the 1920s crash and subsequent depression. OK, some will argue that the actions of institutions like Lehman Brothers have been good for everyone for a long time, as a relatively stable, largely self regulating, global economy has contributed to better quality of life for many.
They'd have a point of course, but there is a world of difference between prudent self regulation and some of the high risk tactics of recent years. Handing out 125% mortgages willy nilly and rewarding staff with obscene bonuses to play fast and loose with depositors’ money was never a good idea, whilst allowing the kind of frenzied speculation that can bring a currency to its knees almost overnight is criminal.
--MORE--
McCain Attacks Wall Street Greed - While 83 Wall Street Lobbyists Work for His Campaign. See the list here
By Matthew Bretherton
Published on 17 Sep 2008
Don't shed too many tears for Lehman Brothers and their ilk, but do look at the bigger picture...
The news of Lehman Brother's collapse sent stock markets around the world tumbling in scenes eerily reminiscent of the 1920s. But we shouldn't feel too sorry for them. It was, after all one of the very institutions that spent the last few years engaged in precisely the kind of high risk tactics that have brought us to the perilous position we find ourselves in today.
Lehman et al have been engaged in a feeding frenzy of greed for decades, ever since the Thatcher/Reagan axis removed market controls that were put in place specifically to prevent the kind of insane risk taking that precipitated the 1920s crash and subsequent depression. OK, some will argue that the actions of institutions like Lehman Brothers have been good for everyone for a long time, as a relatively stable, largely self regulating, global economy has contributed to better quality of life for many.
They'd have a point of course, but there is a world of difference between prudent self regulation and some of the high risk tactics of recent years. Handing out 125% mortgages willy nilly and rewarding staff with obscene bonuses to play fast and loose with depositors’ money was never a good idea, whilst allowing the kind of frenzied speculation that can bring a currency to its knees almost overnight is criminal.
--MORE--