July 18, 2013
The country and much of the world is still reeling from the financial meltdown whose cause can be pinpointed to the major Wall Street banks and their toxic financial products they peddled throughout the globe. Today Detroit has filed for bankruptcy, becoming the largest US city on record to do so.
Cities around the globe are dealing with the pain of the one two punch of toxic products that were sold to them from the big banks and the collapse in property tax revenue from the flood of home mortgage defaults.
Yet, despite the great carnage and ruin to people’s investments, homes, lives, and futures, you’d be hard pressed to find any one of the bankers or hedge fund players own up to any errors or wrong doing.
Believe it or not, they largely place the blame on the blow up on the masses for not continuing to pay their mortgage. Forget about the fact that the banks had a hand in inflating home values to a bubble level, falsified income levels on loan applications so that the loans would qualify, fired appraisers who wouldn’t play ball and appraise homes well above what they really thought they were worth, and conned people with their sweet nothing songs of “you can always get a refi if you need to cash out or adjust your loan payments”. But when things went south, the defaulting homeowner gets the bulk of their finger pointing.
The truth is Wall Street suffers from a case of terminal arrogance, thinking they are the “experts” at all times and never take blame for any mistakes, even as they siphon off funds from the citizens in the form of government bailouts. The growing government debt becomes “our” problem with pressure to cut medicare and social security benefits while increasing taxes. But when Wall Street firms make money, they would laugh at the notion of sharing their wealth with the general population. So despite their claim at loving capitalism, they are hypocrites that actually seek to socialize their losses onto others rather than own up to their mistakes and take direct accountability for them.
Their mantra is “Heads, we win, tails, you lose!”.
The reality is they aren’t as smart as they “think”, and arrogance is a poor substitute for having actual brains. Take the majority of hedge funds out there, upon scrutiny you’ll find just a handful of folks if any that actually know what they’re doing and the rest are just parasites sponging off the knowledge of others.The sad part is these parasites “think” they are as good as the folks who actually know what they are doing – that’s the problem.
Here’s an example- you get into a conversation with one of these types about market or economic related matters- if they feel you have dared questioned their “all-encompassing” market knowledge, they will respond not with a knowledgeable answer that shows they actually know something, but they throw an arrogant “mine is bigger than yours” attack. You’ll hear such drivel as “Our firm has assets of over uptyump billion, we’re globally located, how much do you book in client wealth, we’re the largest this, the best that, etc…”
While these are nice “sounding” attempts to make whoever is saying them seem superior, upon closer analysis, it’s all a bunch of garbage and a dodge from showing any “real” knowledge. What they are attempting to do is make the case that they have soo much money or assets that they must be sooo smart. Good con artists can also make the claim of great wealth from the money they gleaned from their victims, and that’s the meat of it really. Just because someone may be good at getting someone to invest with them, doesn’t mean that actually know what they are doing. It means the hedge fund or banks has convinced the prospective victim investor that they know what they are doing.
Take these would be “geniuses” and put them in a separate room and make them prove they can generate real performance and not just spout out text book portfolio theory mumbo jumbo, then you will see just how “smart” most of them really are.
And therein lies the problem- Wall Street has more “con artists” than actual smart people and being they are given so much power and deference by our Government, don’t expect our economic woes to go away anytime soon. Isn’t it interesting that it’s been over 5 years since the meltdown and there are KNOWN cases of intentional fraud and wrongdoing, and yet, not ONE bank exec has faced criminal charges. Any case brought against the banks have been civil, and and the penalties small in relation to the overall profits made.
This week another civil case opens up against Fabrice Tourre, one the sellers of toxic investment products that led to the meltdown. But he is just a “low man” on the totem pole of blame.
I’m still waiting for “criminal cases” to be brought against the top execs, but I’m not holding my breath for that. Our government and attorney general seems to be too afraid to rock the boat and cause potential economic upheavals with administering “true justice”
… and so the arrogance continues, and we are all but guaranteed that there will be another Wall Street originated crisis because no one was made to pay for their misdeeds this time.