Tuesday, May 05, 2009
More of the same? - quelle surprise! Socialised losses creates enormous moral hazard issues.
Bloomberg: Wall Street Firms Will Revert to Pre-Crisis Model, Cohen Says
Wall Street, after getting billions of taxpayer dollars, will emerge from the financial crisis looking much the same as before markets collapsed, said H. Rodgin Cohen, chairman of law firm Sullivan & Cromwell LLP.
“The system will look more like what preceded the current environment than many people seem to believe,”
Posted by tyrellcorporation @ 04:36 PM (466 views) Add Comment
4 Comments
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1. mander said...
You working people should worry about your jobs only. Stop learning things like derivates, CDSs etc this is only for finance educated people. But in the end Wall Street calls it a sub prime problem which is you the working people who do not support the system anymore.
Nevermind reckless lending making house prices explode in only 10 years time, you should pay a double mortgage because the economy was sound. There was demand indeed.
2. drewster said...
If the banks go back to their old ways of mega-bonuses, then I'll be looking for a career change into banking. Why settle for any less?
3. last_days_of_disco said...
The audacity of Hype. The dudes that funded hopey-changy are making sure they get the return the require on their investment I see.
4. rotten tomato said...
It won't work. Even if all the taxpayer's money is used up. The debt hole is just too big to fill. Yes Wall St may survive, for a little longer, but what good will it be if the whole economy is totally blown to smithereens? Unless of course the outcome of all the resulting chaos is to bring in some sort of new political/economic system. The banksters did it in Germany 1923-33 after all when they financed Hitler into power (yes, American and English bankers and Wall st banks did - but how strange when I learned WW2 in school I was never taught the financial causes of Hitler's rise), what's stopping them from doing something of the same elsewhere? The historical patterns look pretty similar to me.