I like the title to this article….
by Tom on July 6, 2009
in Market Musings, banks
Somehow the comparison between roaches and Wall Street just makes me smile.
Seriously, though, the article brings up a very valid point. Has what’s happened and what is happening in the financial world caused enough people in the financial world to learn their lesson and do things differently?
It appears not…..
Tom Vanderwell
Breakingviews.com. – Like Roaches, Wall St. Survives – NYTimes.com
Wall St. SurvivesIt is said that roaches would survive a nuclear conflagration. But Wall Street is proving similarly resilient to financial Armageddon.
Despite the collapse of Lehman Brothers, the wobbles of big banks and the scarcity of financing across the world, the investment banking business just keeps going.
For every firm that has gone under, a new competitor — lured by the juicy fees on advising mergers, trading securities and underwriting stocks and bonds — seems to have sprung up. In the case of Lehman, one failure even begat two entrants.
As in the auto business, where, despite bankruptcies, companies are still geared up to make too many cars, banking overcapacity could sow the seeds of trouble.
