Do you fully understand the Banking Mess we're in? If not, read this.

Like many people I've found this whole Wall Street mess confusing. It's hard to fathom how the people who do understand the ins and outs of finance, those who work in Banking, let things get so out of hand.

My sister, who was a finance major years ago and who does have a better grasp of the fundamentals, admitted to being just as puzzled as to how all this blew up so badly. She sent me this piece from yesterdays New York times, the Freakanomics column, that clearly explains how we got to this point and why the different actions were taken. It's not a long article, and is very good reading if you're interested in understanding this a bit more.


Views: 61

Comment by Sean Rehder on September 19, 2008 at 9:24am
A few years ago I did some work as systems analyst for a major mortgage company out of Irvine, CA.

Aside from the predatory lending that was going on...legally, what happens to the "paper" after a loan is completed was "mind boggling" to me. How and who "owns the loan" would make any shell game street hustler's jaw drop to the cement sidewalk they are standing on. These hustlers just happen to be standing on Wall Street.

The Giant Pool of Money, a 13 minute podcast by NPR, is also a great "listen."
Comment by Steve Levy on September 19, 2008 at 10:17am
Ah, the joys of the unregulated free market system. Odd how now the administration and congress are getting serious about a solution... Pam, it really isn't so challenging to figure out how this escalated to the point we now see: When revenue streams plateau, creative people find ways to increase the curve. Naturally some of these ways reveal shortcomings in the longer term. But then there's the battle between revenue streams and reality that often evades those who are making money, paying taxes, buying products and services...

The real issue here is whether anyone will see the parallels to the early 1980's bailout/handout of Chrysler, replete with new tariffs and regulations. Back then, the cry was for "HELP, WE'RE DROWNING!" and the Fed swooped in. Did any of the assistance help grow the US auto industry? Nope; sales decreased from 80% of all US auto acquisitions to 45% today. Our government is very bad at creating and managing policies that grow industries...


You need to be a member of RecruitingBlogs to add comments!

Join RecruitingBlogs


All the recruiting news you see here, delivered straight to your inbox.

Just enter your e-mail address below


RecruitingBlogs on Twitter

© 2024   All Rights Reserved   Powered by

Badges  |  Report an Issue  |  Privacy Policy  |  Terms of Service