Here is a rather belated post about the global financial crunch which transpired (and still transpiring?) in the last few weeks/months. The chain of events was incredibly mind-boggling with financial giants, like the seemingly unsinkable 158-year-old enterprise Lehman went kaput. Well, they thought Titanic was also unsinkable then. Reyna Elena, an accountant by day,
and a blood-sucking vampire by night, has written a wonderful series in his blog explaining some jargons of the trade, and a comprehensive review of the US housing market. Go and take a look. You’ll be surprised how the financers and money gurus could fuck up the markets big time.
The “Wall Street” (and here I’m not referring only to the financial centre in Manhattan but to all the financial centres in the world) suffered a humiliating blow, with governments infusing public money into the system to keep the markets afloat. The once mighty, and snobbish financial districts are begging on their knees to the taxpayers requesting for bailouts. Wow, the nerve with these people! Here is a simple exercise; try googling: “wall street bonus“. Did you see how much these motherfuckers reward themselves every single fucking Christmas? Just last year, John Thain, the Merrill Lynch CEO cashed in 82 million US fucking dollars; Goldman Sachs’ Lloyd Simpson, USD 52 million and Morgan Stanley’s John Mack USD 40 million. It is reported as well that on average, the employees of Bear Sterns, Merrill Lynch, Morgan Stanley, Lehman Brothers and Goldman Sachs raked in almost a quarter of a million in bonus money at the end of fiscal year! Talk about greed to the nth power! To say that these massive payoffs is grotesque is definitely an understatement.
Despite the signs of the times, and clear fundamentals, how the supposedly smart guys in the finance world be overwhelmed by lack of foresight is truly jaw-dropping.
The answer, in my opinion, is simple: arrogance and greed.
Here is the link to Reyna Elena’s post on Understanding subprime and the US housing market.
In the latest development, the FBI is now investigating the top bosses of the four firms, Freddie Mac, Fannie Mae, AIG and Lehman Brothers. This better leads somewhere!