'My Momma Done Told Me'

David Mudd tries to blame the other Guy, and it does not come off well. The trouble with the Analysis comes in the fact that the Signs of disaster had been appearing for years, he had multiple opportunities to inform Congress of the coming Storm in the financial world, and he chose to join the Consensus losers, rather than be a Whistle-Blower. The Investment pattern by Fannie Mae showed clear expression of fraying and breakage, but he simply collected some $10 million in bonuses in his first four years at Fannie. A direct connection can be made between the reward magnitude, and the level of Risks entertained by Fannie; no one pays such Prices for actually competent performance, when it is performed in the normal course of business activity; not even in the Wildcatting of Wall Street of these years. The assumption of unsanitary Risk was the sole criteria for such level of bonuses.

Here is an article declaring that the good ole Days of huge Gains is over for Wall Street. It amuses Me, since it has been a common rendition ever since the days of the gay 1890s. Obvious wealth has always been the billboard of Wall Street, and will remain as long as they are allowed to shift other Peoples’ money. It is the nature of the industry. The only thing which will change comes in the form of Property values, which will fall until a new Wave of heavy Dealers will arrive at the Street. The real Winners are those Traders who pack away a couple million every year, and Retire to a village in Florida, where they will always speak of their rectitude in the den of vipers. They don’t visit the Bars and Restaurants–Brown-bagging their lunch, and live somewhere in Queens. They watch the High-Rollers come and go, and rub shoulders with them on the Exchange floor; shaking their heads, while wondering what deal will bring the kingpins down. It also is the nature of the business!

Robert Franks claims it is Steroids, or as he puts it, the ability to participate in the Markets utilizing other peoples’ money. He says that this must be limited, but a limitation would be the end of the Markets. The fact of the matter resides in most people being too lazy or too ignorant to invest their own excess Cash. They simply do not know how to put it to Work, anytime it extends beyond their own little sphere of competence. I personally have a Sister, who was raised in the same Household under the same Schooling conditions, who was rabid for the $700 Bailout; her rationale being it would save her Mutual Fund and Hedge Fund investments. A reasoned argument could not shake that belief, and her Equity will suffer nevertheless. One can only listen to the Grateful Dead in ‘We will Survive’. lgl