Michael Lewis on 60 Minutes

[erpowers]

Is anyone watching 60 Minutes, which is now examining Michael Lewis' book "The Big Short"? Does anyone buy what Lewis and the other person on the show is saying? I am not buying the story. First, Lewis claimed that he thought the investment bankers and the CEOs of the large banking companies did not know what was going on at their firms. He also said that about only 20 or less investors knew what was going on on Wall Street.

Lewis is wrong about both of these points. There were many people who knew that the subprime market was going to collaspe. In addition, a number of Wall Street bankers and CEOs knew the mortgages were bad. It has been reported that Goldman Sachs both sold bad loans and bet against the bad loans they sold.

In addition, many people before Michael Lewis pointed out that many stupid things were going on on Wall Street. Kevin Philips published the book "Bad Money" about a year before the financial meltdown. Also, many people like Paul Krugman were saying, years before anything happened, if nothing was done the housing market would fail. Other people who saw trouble ahead for Wall Steet were Warren Buffet, Brooksely Born, and Sheila Bair to name a few. Moreover, I think many more people would have figured out that something bad was going to happen if they had actually known what was happening on Wall Street.

Finally, the former doctor that was profiled who made millions betting against the stock market was not the only guy who made million off the market. There are a number of investors who made more money then that guy made betting against Wall Street.

I think the only things this guy go right was that banks like Goldman Sachs were allowed to pay off ratings agencies and that Goldman Sachs' political connections may have helped them benefit from the financial bailout. After watching the Lewis interview I think his book will be worthless. He actually claimed one needed to be a really smart person on Wall Street to know why certain financial changes have not been made. That is just not true. Just about everyone knows why certain rules that should have been changed have not been changed.

[SlackWillie]

1. They robbed us under Bush, and they are raping us under Obama. They will pillage us under the next

administration, book it Dan-no.

[truedelphi]

2. We at Vichy Care protest this post.

As one of the top executives for the top rated health insurance firm of Vichy Care, we know these executives were simply a bit misguided. On any given day, these Wall Street execs had to spend great deal of time offering money to lobbyists and making sure that the right Presidential aides and /or Senators got the message.

Think of the additional time they spent with their families and their spouses. How did they even have the ability to comprehend the MeltDown of all that was sacred in the System?

It is a well known fact that in addition to being a woman, and occasionally wearing skirts, Brooksley Born smokes CRACK.

So there!

Another political comment brought to you by the good people at:

Vichy Care. We take your premium dollars so other insurers don't get them.

Our coveted A+ rating was paid for by the sweat of our CEO!!!

[Pharlo]

3. Well, how could these CEOs and investment bankers know?

I mean really? Do the doubting Thomases in life think the CEO's and investment bankers can foresee EVERY possible outcome? I mean, jeez, next thing you know you'll be implying that the PDB 'Bin Laden determined to strike in US' should have forewarned the Bush Administration that Bin Laden might strike in the US.

I guess some people just don't understand the subtle intricacies involved in the whole 'no one could have possibly foreseen' excuse.

[theoldman]

4. I watched the same program and have a different perspective.

There were thousands of people working at these companies and the right hand did not know what the left hand was doing. Only the accounting department knew the big picture and they were not talking. If you have ever worked at a large company you will understand the lack of communication. The important thing for each person was to make a lot of money. No one else at the company cared how they did it and did not care to investigate. When a big loss occurred the person was let go and they just went to work at another company.

[peace13]

5. Yes I saw it and I think they are looking for excuses for why it was OK to bilk the middle class.

Very disgusting. AIG for one....bailed out by the government but the little guy lost his investment. The entire article was bogus.