Monday, September 15, 2008

Yet another bailout

I'm probably as confused as the rest of America this morning. How did all these super smart, freakish even, Ivy League grads screw this up so badly? Aren't they America's best and brightest on Wall Street? I'll tell you how. Hubris, greed, complete and utter ignorance to what is happening in the world, you name it.

When you start receiving pay packages north of $1M per year, things get a bit fuzzy and unclear. When $5M is the norm, prices don't even matter anymore. Past $1oM and you probably don't even consider what is happening to the price of gas in NJ let alone what the summer house in the Hamptons is going to run you for maintenance over the course of the season. Seriously, let's talk about being disconnected from reality. That's what happened to these massive, over bloated investment banks on Wall Street.

Now they are receiving bailouts for their poor performance in the fashion of either a Fed infusion or a lucrative buyout offer from BofA. Talk about the rich keeping the rich afloat. It's not about what's good for the economy at this point. While there will be painful results from this, we'll live. It's about keeping all their prep school buddies in their S550s and in the stands for the US Open. Its' about screwing the little guy again who is left holding the tax bag to help out these idiots who took too many risks and are now paying the price.

If there is one thing that I have shown in my writings on this blog, I'm all about the survival of the fittest. If your coffee sucks, you're going to lose business. If your cars suck, people will go elsewhere. Well, in finance, if your decisions suck, you should go out of business. Pay the price and hold yourselves accountable dammit!

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