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Headlines #2

December 9, 2011

Corzine Testimony: Has Anything Changed on Wall Street?

This is yesterday afternoon’s headline and I’m laughing hysterically – it would actually be funny if it wasn’t so sad! The answer is yes, things have changed on Wall Street. Wall Street has learned they can gamble and accumulate the biggest losses in the history of the world and then be bailed out by the taxpayer and promised they can never fail.

Mr. Corzine’s problem was that his firm, MF Global, didn’t make the “too-big-to-fail” list. This is not unique to MF Global; it is just one more hole in the dike, ladies and gentlemen.

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One Comment
  1. Randy Nethery permalink
    December 11, 2011 7:30 pm

    Jon,

    I would first like to say that I am excited about having the opportunity to follow your blog! I have been interested in this financial debacle for many years, and I have studied the causes and effects of this mess since about 2004. This is a financial disaster we should have all seen coming. I read your article in one of the recent APBs, and your analysis is one of the most concise and accurate I’ve ever read. During the past few years, I’ve followed: Peter Schiff, Bill Bonner, Gary North, and several other contrarian business people and economists and you are among the best!

    I worked in Sacramento in 2006 and 2007, and I was amazed that some of my middle-income friends were purchasing homes for $500K-$700K. Although I am not a financial expert, it seemed clearly obvious to me that a train-wreck of historical proportions was looming. It is wonderful that you are bringing these issues to light so future mistakes may be avoided (although I predict we will NEVER return to a standard of living we once knew).

    Now to Mr. Corzine: I would like to say that I was “dumbfounded” and “amazed” by Mr. Corzine’s testimony, but my level of desensitization is at an all time high. Several years ago, we would have been collectively appalled by a company executive who had the nerve and audacity to state that he had no idea what happened to $1.2 Billion Dollars. If that weren’t shocking enough, he then tried to minimize the loss by offering a “sincere” apology!

    Unfortunately, Americans have heard so many of these Corzinesque stories that they are generally apethetic in response. They still get up, go to work and hope that tomorrow is better than today. Even though this disaster systematically robbed most Americans of a not-yet-determined amount of money (through loss of retirement/pension funds and impending inflation), they still don’t get it. They don’t yet realize their lives are about to change in a very substantial way. It may be quite scary indeed when the stark realization actually becomes present in each of their lives. The horrible realization that everything they dreamed of and strived for, all the long hours of work and sacrifice, and all the hopes for the future have been stolen from them by the very people they trusted. A day of reckoning will come…and it will surely impact all of us in a very negative way.

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