9/17/2008

Game over in Wall Street

The financial wizards and witches in Wall Street are running out of magic and tricks. All the derivatives, paper money, junk bonds etc that they have concocted to be exchanged for money are not working. By the stroke of mid night, they will be transformed back to their original forms, worthless papers. We have seen Merrill Lynch, Citibanks going down. Fannie Mae, Freddie Mac, and Lehmah. AIG barely breathing. Now who's next? Morgan Stanley, and Goldman Sach? Is there anyone that would be spared? The game is over. But the wizards and witches are still very, very rich. It is the poor investors in America and the world over that have paid the price. Someone care to explain why these people are paid millions and millions when they are gambling with other people's money? And when the game is up, they just pack up and go. They only lose other people's money, not their own money.

6 comments:

Anonymous said...

The next will be Washington Mutual. The AIG bailout is only temporary, because the problem is not liquidity but insolvency.

Anonymous said...

It is not hard to imagine scenarios when money are parked in large organisation, the management in turn in the name to divest and make more monies re-invest everywhere in the belief there are profits to be made. While in meantime reward themselves handsomely.

IF ML was sold for alot more less, it will makes the story of LONG TERM INVESTMENT into a sorry story. Are our other investment parked overseas immune from such problems?

Anonymous said...

Is it their fault?We do want to be rich(greed).No difference. Who is the fool and sucker.

redbean said...

read my new post on The Loot Chain.

Anonymous said...

they said our investments are long term, like 1,000 years, so why sell now? or is it clear by now that we did the rite thing by buying the rite assets at the wrong time? any more gecko type explanations will certainly help, so that even if i am still as clueless as everyone elses in the end, at least i'd get a kick from learning new tricks.

redbean said...

thank the lucky stars. my heart was fluttering with anxiety.