Sinking ships that pass in the night

What’s it feel like to lose a Billion Dollars of other people’s money? That would assume an investment banker gives a shit.

High finance had been decided by what amounted to playground politics. Shareholders lost everywhere. Bonuses were paid everywhere.

In the early days, two big banks had been dealing with each other on a regular basis in very large volumes. After a while they each inquired what the other was up to. Both thought they were making money on the trades – bank A was selling something to bank B, yet both banks recorded they were making a profit on these trades.

Both banks booked a profit in their accounts, and both sets of traders got bonuses. You don’t need to be a genius to see the problem here.

[Sunday Times]

Welcome to 1997

Ten years of gains wiped clean.

Next stop: DOW 6000! Aaaaaaaaaaaaaall aboard!

Where is Stanford? [Wiki]

Enjoying the good life with Ken Lay, no doubt.

“We didn’t need terrorists to destroy our nation. We’re doing it to ourselves, and the guilty parties are found within the boundaries of Washington DC.” -Karl Denninger

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