We are still feeling the aftermath of the collapse of Lehman Brothers on September 15, 2008. That day the financial world froze and we all looked in panic down at the abyss. Armageddon had emerged and there was no way of knowing what would happen in a system which had been shattered into a million pieces by hubris and unlimited greed.
Hank Paulson had the bright idea that he should pass the hat to the Federal Government to solve the crisis and requested a bailout of $700 billion. After a heated debate, Congress in an act of desperation relented and approved the gargantuan financial deal that would pull us out from the brink of financial chaos.
Five years later, the banks have once more returned to their esoteric formulas designed by obscure people called “quants” allowing the Masters of the Universe to generate enormous mountains of profits. The “Good Old Days” are back again and money is flowing in like the ferocious waters of the Orinoco River.
“Five years after the financial crisis, Wall Street banks are recovering splendidly. Record profits are becoming routine, and earnings are way, way up. Today, we learned that Goldman Sachs made $1.93 billion last quarter, or double what it made in the same quarter last year. Last week, we learned that JPMorgan Chase made $6.5 billion in the second quarter, or more than $72 million per day. And on Thursday, we’re expected to learn that Morgan Stanley—the last of Wall Street’s Big Three—made something like $900 million in the quarter.”—Kevin Roose, New York Magazine
After reading this chilling news about the astronomical profits of the banks “Too Big to Fail”, the following words come to my mind: “Every time history repeats itself, the price of the lesson goes up.”—Anonymous. Good Day.