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  1. 15 Mar '10 16:00
    Michael Lewis was on 60 Minutes last night, bashing wall street (and esp. goldman sachs) for the financial crisis.

    he said Moody's rated junk bonds as AAA because they were paid (by firms like GS) to do so. GS then sold the bonds or had them covered by such as AIG.

    http://news.google.com/news/search?aq=f&pz=1&cf=all&ned=us&hl=en&q=michael+lewis
  2. 15 Mar '10 16:01 / 1 edit
    well, he has detractors, but she doesn't refer to that point.

    http://www.huffingtonpost.com/janet-tavakoli/michael-lewis-junior-sale_b_498781.html
  3. 15 Mar '10 16:09
    Lewis: 'EVERYONE made money. I did not come across a single (player) who lost money on this.'

    video of the interview last night on 60 minutes:

    http://www.ritholtz.com/blog/2010/03/60-minutes-michael-lewis-the-big-short/
  4. Standard member sbacat
    Eddie's Dad
    15 Mar '10 16:32
    I watched it in disgust. Whether he's completely accurate in his recollections is, to me, beside the point. Wall Street is legalized gambling, where the fat cats rake in huge dough and when their bets go bad, it's Uncle Sam to the rescue.

    On one hand, a free market should theoretically regulate itself, but the push for more more more drowns out common sense and kills the drive for longterm stability over short term profit. We've done it to ourselves. My pension fund is loaded with stocks and bonds and I want them performing at their maximum potential, right? How much risk are you willing to take? When there doesn't appear to be a ceiling, keep on going. Go go go! Growth is good.

    But then boom.
  5. 15 Mar '10 16:42
    http://en.wikipedia.org/wiki/Henry_Paulson

    Henry Merritt "Hank" Paulson, Jr. (born March 28, 1946) served as the 74th United States Treasury Secretary. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.

    http://en.wikipedia.org/wiki/Timothy_Geithner

    Timothy Franz Geithner (pronounced /ˈɡaɪtnər/; born August 18, 1961) is the 75th and current United States Secretary of the Treasury, serving under President Barack Obama. He was previously the president of the Federal Reserve Bank of New York.

    ...

    In March 2008, he arranged the rescue and sale of Bear Stearns.;[11][20] In the same year, he played a supporting role to Henry Paulson, former CEO of Goldman Sachs, in the decision to bail out AIG just two days after deciding not to rescue Lehman Brothers from bankruptcy. According to some observers, Geithner severely damaged the U.S. economy.[21] As a Treasury official, he helped manage multiple international crises of the 1990s[13] in Brazil, Mexico, Indonesia, South Korea, and Thailand.[14]

    http://en.wikipedia.org/wiki/Ben_bernanke

    Ben Shalom Bernanke[1] (pronounced /bərˈnænki/ bər-NAN-kee;[2] born December 13, 1953) is an American economist, and the current Chairman of the United States Federal Reserve. Previously, he served as Fed Governor and Chairman of President George W. Bush's Council of Economic Advisers. In 2009, he was named the TIME magazine person of the year.[3]

    ...

    Merrill Lynch merger with Bank of America

    In a letter to Congress from New York State Attorney General Andrew Cuomo dated April 23, 2009, Bernanke was mentioned along with former Treasury Secretary Henry Paulson in allegations of fraud concerning the acquisition of Merrill Lynch by Bank of America. The letter alleged that the extent of the losses at Merrill Lynch were not disclosed to Bank of America by Bernanke and Paulson. When Bank of America CEO Kenneth Lewis informed Paulson that Bank of America was exiting the merger by invoking the "Materially Adverse Change" clause Paulson immediately called Lewis to a meeting in Washington. At the meeting, which allegedly took place on December 21, 2008, Paulson told Lewis that he and the board would be replaced if they invoked the MAC clause and additionally not to reveal the extent of the losses to shareholders. Paulson stated to Cuomo's office that he was directed by Bernanke to threaten Lewis in this manner.[45] Congressional hearings into these allegations were conducted on June 25, 2009, with Bernanke testifying that he did not bully Ken Lewis. Under intense questioning by members of Congress, Bernanke said, "I never said anything about firing the board and the management [of Bank of America]." In further testimony, Bernanke said the Fed did nothing illegal or unethical in its efforts to convince Bank of America not to end the merger. Lewis told the panel that authorities expressed "strong views" but said he would not characterize their stance as improper.[46]
    [edit] AIG bailout

    According to a January 26, 2010, column in The Huffington Post, a whistleblower has disclosed documents providing "'troubling details' of Bernanke's role in the AIG bailout". Republican Senator Jim Bunning of Kentucky said on CNBC that he had seen documents which show Bernanke overruled recommendations from his staff in bailing out AIG. The columnist says this raises questions as to whether or not the decision to bail out AIG was necessary. Senators from both parties who support Bernanke say his actions averted worse problems and outweigh whatever responsibility he may have for the financial crisis.[47]
  6. Subscriber AThousandYoung
    Poor Filipov :,(
    15 Mar '10 16:46
    Originally posted by sbacat
    I watched it in disgust. Whether he's completely accurate in his recollections is, to me, beside the point. Wall Street is legalized gambling, where the fat cats rake in huge dough and when their bets go bad, it's Uncle Sam to the rescue.

    On one hand, a free market should theoretically regulate itself, but the push for more more more drowns out common sens ...[text shortened]... e doesn't appear to be a ceiling, keep on going. Go go go! Growth is good.

    But then boom.
    What did you watch? All I got was a search page.
  7. Standard member Seitse
    Doug Stanhope
    15 Mar '10 16:48
    Originally posted by sbacat
    Wall Street is legalized gambling...

    ... kills the drive for longterm stability over short term profit...

    ... We've done it to ourselves...

    ... (unlimited) Growth is good... (said with irony, of course)

    Pearls of wisdom thrown with such simplicity that it is almost beautiful, sbacat.

    It is that easy. The system is rotten.
  8. Subscriber AThousandYoung
    Poor Filipov :,(
    15 Mar '10 16:50
    Originally posted by Seitse
    Pearls of wisdom thrown with such simplicity that it is almost beautiful, sbacat.

    It is that easy. The system is rotten.
    What's the solution? Nordic style social democracies?
  9. 15 Mar '10 16:52
    Originally posted by AThousandYoung
    What did you watch? All I got was a search page.
    there are two videos on the page. you need to click the Play triangles that show up on the embedded videos. NOT the "Watch CBS News Videos Online" link below them.

    http://www.ritholtz.com/blog/2010/03/60-minutes-michael-lewis-the-big-short/
  10. 15 Mar '10 16:53
    Originally posted by AThousandYoung
    What's the solution? Nordic style social democracies?
    prosecution is the solution.

    move the federal courts that would try these cases to Kansas. i'm sure the bigwigs can afford the travel expense.
  11. Standard member Seitse
    Doug Stanhope
    15 Mar '10 16:56
    Originally posted by AThousandYoung
    What's the solution? Nordic style social democracies?
    I am not here to give you fish, my son, I am here to teach you how to fish.
  12. Subscriber AThousandYoung
    Poor Filipov :,(
    15 Mar '10 17:01
    Originally posted by Seitse
    I am not here to give you fish, my son, I am here to teach you how to fish.
    No, you're just telling me my fishing style sucks.
  13. Standard member Seitse
    Doug Stanhope
    15 Mar '10 17:07
    Originally posted by AThousandYoung
    No, you're just telling me my fishing style sucks.
    Funny, I recall addressing Sbacat, not you.

    Paranoid a bit?

    Next will be the munchies, dude. Behold!
  14. 15 Mar '10 17:13
    Originally posted by Seitse
    I am not here to give you fish, my son, I am here to teach you how to fish.
    I love that quote.
    I see the same people on the street corners, with will work for food...
    But the usuals don't really want to work, they just want money. I even had a guy try to sell a day pack he had just ripped off from Fred Meyers.
    what we need to do, and it's impossible, is get these people useable skills.
    I now find myself in that same position,,:-(
  15. Standard member sbacat
    Eddie's Dad
    15 Mar '10 17:47
    Originally posted by AThousandYoung
    What did you watch? All I got was a search page.
    Didn't follow his link. It was on CBS 60 Minutes last night. The big banks are under huge pressure to make a profit. The teams that put together ways to make those profits get the big bonuses. All the investors want big returns, so they're (we're) all on board. The regulators either don't understand the complexity of what's going on or they're in the pocket of big business, too.

    And as long as the music kept playing...