Accounting & Investing Info for San Antonio A & M
Tuesday February 5 2013
NO not Elliott Ness but the whole gang on Wall Street that gambled pulbic money and was then bailed out by the government when the bets went bad. An alert student posted this Frontline article. I agree it is well worth watching.
Well watched a bit of it and found it only reinforced my understanding:
1: those at the highest levels only saw the revenue (did not understand fully where it came from).
2: that without insurance against bad debt (AIG) none of this happens
3: That all in control both in the private sector and in the government had no understanding of the exotic products and choose to remain unknowing.
4: that at the end of the day everyone burned (except the taxpayer) ignored the word “RISK” written on every investment publication.
5: lets be honest they were rolling 7 with loaded dice and when the casino could no longer cover the bets it all fell apart.
it is not illegal to gamble with investments, it is not illegal to on purpose not understand what a subsidary was selling as a product.
And the last thing: The governments ending of “Redlining” was the rock bottom causation. Redlining allowed banks and investment companys to avoid placing bad bets without having to prove why they didn’t make that bet.
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Professor Elam 
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