Tuesday, September 16, 2008

Just asking

Of course, I don't really understand the market collapse.

Do you?

A house of cards way too complicated for a simpleton like me.

But, if I am not mistaken, the ever-so-brilliant Lehman Brothers were enormously over-leveraged on paper mortgages.

In short, they put most of their eggs in one basket.

Now, excuse me for asking those who know so much better.

But isn't a basic principal of investment to maintain balance and diversity?


Anonymous said...

'tis not all that complicated David.


Lack of compassion.


No tithing.


Taking advantage of the uninformed.


Forming the ultimate 'ponzi scheme' by creating derivatives from 'questionable' mortgage instruments, then selling those derivatives to create ever more profits.

Did I mention Greed?

Anonymous said...

we are living in interesting times.