Yeah, maybe we x-dressers should be in charge?
If I'd been running Lehman Brothers (formerly the fourth-largest US investment bank, now bankrupt) then there's no way I'd have let them build a house of cards on a debt bubble. It's a position founded on crap. Just WTF were they up to?
We've seen a bunch of people lend money to house-buyers without proper checks on their ability to pay it back. And... surprise, surprise, some go into default. The people who lent the money don't give a fuck because they can sell the debt onwards - and it's these repackaged debts that caused the credit crunch. A lot of the debts were worthless (or "sub-prime") but nobody cared so long as they were saleable. People like Lehman regarded these packages as assets, as good as cash.
Then one day somebody had the sense to not buy them. Then others didn't buy them either. Then a load of people shat themselves, thinking WTF am I holding in my portfolio, OMG
And that's where we are today.
Tomorrow's another story.
Meanwhile, I just wiggle my butt in panties from time to time and don't ever buy other people's debts.
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