Thursday, December 11, 2008

The End of Wall Street

We live in interesting times. Wall Street is in disarray. The financial industry has required massive government intervention just to keep the essential moving parts of our economy from melting down. Detroit is holding up a cardboard sign that says "Will work for food. Disabled veteran American company. God Bless"

How did we get to this point? We know that sub-prime lending played a key role. We know that decling home prices struck a match to the sub-prime powder keg. But how do you make the leap from a $14,000 a year strawberry picker buying a million dollar house to the collapse of Lehman Brothers? This article helps explain a lot.

The End of Wall Street Article

The ignominous cameo by Lomas Financial was particularly amusing. My own dear dad worked for Lomas back in the day. Le brilliant!

‘The Lomas Financial Corp. is a perfectly hedged financial institution: It
loses money in every conceivable interest-rate environment.’


Anonymous said...

That can't be right. It's my understanding that it was George Bush's fault. I'm pretty sure he planned this meltdown right after planning Katrina and 9/11

Chris said...

And now comes news that W is persecuting a downtrodden shoe salesman in Iraq. The guy was just offering W a free pair of shoes, but he was too far to hand the shoes to him. Say it aint so, George!