Well, you can certainly put the blame on the quants, some
rookies fresh out of Business school with MBA in finance and
risk management or physics/math Ph.D.s, who trust the models
and VAR calculations like they are Gods and never seen a
meltdown in their lives. I think that's exactly what happened.
There were some real criminals, of course, who knew it's gonna
blow up, but did what they did to enrich themselves. Or you can
blame Sir Alan, who avoided the pain pill, bailed out the
system and blew bubbles until they grew bigger than the Fed.
Now, I believe AG knew exactly what he was doing and how it
will all end (not on his watch) back in 2002-2003, so he is
a real criminal. He blew the housing bubble on purpose, to
bail out the stock market dot com collapse.
Or you can blame the corrupt politicians, especially ones in
current administration, who really needed the recovery for
their ratings. I believe quite a few crooks there
I bet we'll find a lot of real crooks, but by
far not everyone in the banking business. I bet 90% of the
boyz and girlz at Bear had no clue what was happening until
that Sunday evening. |
