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February 10, 2012
Lisa M. Krieger: Man with defibrillator demands access to his own heart's information
David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
February 9, 2012
Laura McMullen: 10 Least Expensive Public Schools for Out-of-State Students
Kimberly Palmer: How to actually enjoy -- relaxing, financially -- your vacation
February 8, 2012
Warren Richey: Why momentous Prop. 8 ruling might not satisfy gay-rights groups
Menachem Wecker: Though Controversial, LL.M.'s Can Lead to Specialized Legal Jobs
The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
February 7, 2012
Frank J. Gaffney, Jr.: Caught off-guard? President's Super Bowl interview with Matt Lauer gives those who need a reason not to vote for him, a darn good one
Suzanne Bohan: Leaping lizards! Tiny reptiles advancing robot design
February 6, 2012
Jonathan Tobin: Iran Threatens Israel With Destruction, But the New York Times Doesn't Hear It
Jeffrey Fleishman: In newly democratic Egypt, tens of democracy activists jailed, to stand trial; their groups are 'threatening the stability of the homeland'
Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
Feb. 12, 2009
/ 18 Shevat 5769
Wall Street wizards no more
By
Bob Tyrrell
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http://www.JewishWorldReview.com |
The phenomenon of opulent Wall Street investment wizards contributing in large numbers to the Democratic Party, often to the left wing of the Democratic Party, struck me, until recent years, as perverse to the utmost. During the 2008 election cycle, 60 percent of the donations made by employees of the top Wall Street firms went to Democrats. Surely, these Wall Street donors had to realize that the left wing of the Democratic Party, which dominates the party, is utterly ignorant of the economic system that allowed the Wall Streeters their opulence. Yet as the imbecility of Citigroup and AIG and all the rest is revealed, it has become obvious that those who write checks for Madame Pelosi and for the enthusiasms of Al Gore actually know very little about free market capitalism. If they did, they would have realized that in capitalism, the bubble always bursts and the chain letter always runs out of suckers.
Reviewing the fall of these impossibly leveraged investment firms, it is apparent that their leading executives had no respect for prudent risk management or for prudence in general. Lending standards were foreign to them. Their laxness would have been spotted easily in decades past by prudent lenders. Yet for several decades now, standards of all sorts have been wasting away, for instance, entertainment standards, intellectual standards and investment standards. Where there was once Ella Fitzgerald there is now Britney Spears. Russell Kirk has been replaced by Arianna Huffington. Walter Wriston gives way to Robert Rubin. Obviously, when investment standards are abused, the consequences are more immediate than in the realms of entertainment and intellect. Financial loss is real and cannot be denied for long.
From our vantage point in early 2009, we can see that critics of Alan Greenspan were right when they said that he lowered interest rates too much between 2001 and 2004. But what about the products that the Wall Street wizards were selling? They were called in hushed tones of awe "complex derivatives." Actually, they were sausages stuffed with junk loans, mediocre loans, good loans and sufficient spice to sucker the credulous. These sausages were sold all over the world, and every time a transaction was made, those in on the transaction made money, even the vegetarians, even the economic ignoramuses. It was a kind of gigantic chain letter. Government regulators did not take heed. The politicians did not take heed. Those investment bankers who did and who spoke out were ignored.
As one of the now-discredited wizards, former CEO of Citigroup Chuck Prince, put it in an interview with the Financial Times: "When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you got to get up and dance. We're still dancing." He said that in July 2007. He was off the dance floor by early November. There was a time when such insouciance about excess "liquidity" would be unthinkable for a responsible Wall Street banker. Yet as I say, in recent years there have not been a lot of responsible officers in the Wall Street investment houses, and those who were responsible were not listened to.
On Wall Street, in London, and wherever else the madness took hold, huge salaries and bonuses were heaved around, even after the bubble had burst and the chain letter was seen for what it was. Now my worry is that the rogues of Wall Street will be replaced by the rogues of Washington. A fundamental problem of our time is a widespread insouciance to prudent standards. Such standards would have restrained the opportunists who danced when they should have practiced due diligence. Now let us hope the politicians will return to prudent standards in fashioning their resolution of the financial crisis. Thus far, there is little reason for optimism.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
JWR contributor Bob Tyrrell is editor in chief of The American Spectator. Comment by clicking here.
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