Saturday, May 1, 2010

Great little cartoon

http://www.ritholtz.com/blog/2010/04/portfolio-of-securitized-souls/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheBigPicture+%28The+Big+Picture%29&utm_content=My+Yahoo
Posted by at

5 comments:

  1. Ashlee SteudleMay 1, 2010 at 9:57 PM

    This cartoon really helps exemplify the idea that no one is safe from wall street. Even super natural powers (e.g., the devil) do not have the expertise to understand the credit default swaps. How are individual consumers or even business school educated people supposed to understand them?

    ReplyDelete
  2. Chloe ReevesMay 2, 2010 at 5:27 AM

    I agree with Ashlee. As we read in 13 Bankers last week banking used to be about customer relations and know its about having incredible math skills to take advantage of small flaws in the system. These Wall Street bankers are incredibly smart and use that to their advantage to increase their firms wealth. They do their jobs extremely well. I guess even the devil would be proud.

    ReplyDelete
  3. Jared AndrzejewskiMay 2, 2010 at 1:26 PM

    This cartoon clearly illustrates the problem that not everyone understands what securitization is and how people do not read their contracts fully. This is why many people had their house foreclose because they could not pay their mortgage anymore. Then the investment banks put the blame on the people for selling them the very risky and bad investments and is how they get away with committing "fraud."

    ReplyDelete
  4. k06rl01May 2, 2010 at 4:17 PM

    This cartoon really shows the complexity of some of the investment vehicles that were responsible for the financial crisis. House of Cards showed that CDO's were to complex for even Alan Greenspan to feel completely comfortable explaining their contents. Its pretty scary how confusing transactions can get and how one category of investments can have such a big impact on the economy.

    ReplyDelete
  5. Ben MinkoffMay 2, 2010 at 5:27 PM

    This is sadly perfect. I agree with Jared on this why people had to foreclose their house because they couldn't pay their mortgage any more. Its true that the investment bankers tried to turn it on the people trying to sell them. This cartoon really shows the reputation that some bankers have..very unethical business.

    ReplyDelete

Subscribe to: Post Comments (Atom)