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Politics : Ask Michael Burke
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To: Kerry Phineas who wrote (110698)1/22/2008 6:30:50 PM
From: Knighty Tin  Read Replies (2) of 132070
 
I think the problem goes back to allowing investment banks and regular banks to merge. The regular banks were conservative in making mortgages (but dumb about a heck of a lot of other things), but the cowboy investment banks saw a way to make a silk purse out of the sow's ear of mortgages by packaging and taking a healthy fee for the wrapping paper. Oh, by the way, they also guaranteed many of the packages, taking the bank balance sheets into the toilet.

Now this isn't a blanket comdemnation of investment banks. I don't hear anyone saying Goldman is on the verge of bankruptcy. The stock is still overpriced, but this is a great operating company. Unfortunately, it's like when the little kids try to copy what pro wrestlers do on tv. The less agile and more fragile kiddies are gonna get hurt.
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