Monday, September 21, 2009

No Fault of Bankers?

That is what Megan McArdle essentially argues at The Atlantic.

It is not necessary that bank CEO's also lost money. What about bonuses which were tied to 'moving radioactive trash called CDOs'? Those bankers got those bonuses for selling those CDOs and when those CDOs were going burst, none of those bonuses were revoked. Worse, Uncle Sam came to rescue these banks and pay AIG to honor all of the risky hedges placed by Goldman Sachs so that these Wall Street banks get back all their money despite setting all risky financial transactions.

This blog still sticks to the fundamental truth about America - there are only 2 things permanent: one is American Constitution and the other is all pervasive influence of Wall Street.

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