Guilty as charged, but are they? Lets take a look at Lehman Brothers, the mother ship. http://www.villagevoice.com/content/printVersion/725636 It is a fat read but very interesting to say the least. I totally saw this coming. For those who pointed the finger solely at the buyer for taking on loans which they could not afford, well it just took a twist and perhaps not all buyers who did were so willing to jump on the band wagon. Stories like these are now packing themselves at the flood gates. Regulation will take over and then, God only knows...
Good article. I've said that from what I can tell, this financial crisis is mostly created by Wall St., and inadequate regulation. Excessive and poorly structured executive compensation plans gave Wall St. the incentive to act the way they did. They optimized their bonus and stock option plans in the short run (3 to 5 years), while running the company into bankruptcy or forced sale at the end of the run.
