Wall Street firms feel subprime pain
Bob Morris @ Jun 22nd 2007 08:07 - Category: Credit crisis
More hedge funds are expected to blow up in the coming months too. They’ve already lost billions. Well, that’s what they get for being greedheads. They should have remembered their own Wall Street adage, “bulls make money, bears make money, but pigs get slaughtered.”
Odd, wasn’t it just a few months ago those firms (and the Fed) were saying everything was just peachy with subprime, with no problems expected?
So, do they just lie for the sake of lying or are they genuinely and seriously deluded? As for the hundreds of thousands (maybe millions by now) of those who have lost or are losing homes due to fraudulent or usurious mortgages, Wall Street is, of course, silent.
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DJ on 22 Jun 2007 at 1:56 pm #
Personally I find it interesting that former Fed chair Greenspan is still warning, while current Fed chair (and Bush appointee) Bernanke would have us believe all is well.
Bob Morris on 22 Jun 2007 at 10:24 pm #
Greenspan rebuffed atempts by a Fed governor to regulate subprime in 2000. So his entreaties seem a bit hollow now that the damage is done and hedge funds made billions.
http://polizeros.com/2007/06/10/greenspan-blocked-crackdown-on-subprime-lenders/
DJ on 22 Jun 2007 at 11:23 pm #
I haven’t heard him say anything about sub-prime, good or bad– only that he recognizes the economy is in trouble, and has for some months now. Unlike Bernanke who says everything is fine…