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Old August 11th, 2009, 10:41 AM   #14 (permalink)
olivia
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Join Date: Jan 2008
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Quote:
Originally Posted by Little Wombat View Post
Goldman Sachs suffered losses. Honestly, I don't get what you're saying. "Risk manipulation"?? If you could manipulate risk, it wouldn't be risk at all.
Exactly. The only ones taking the risk are you and I, and not willingly nor are we fully informed. The economic theory is (roughly) that banks no longer have to take risks - they can force people too.

Look up the history of Montana Power and Light. It was one of the most efficient, cheapest sources of energy in the country until the bankers with their investors convinced the state gov't to make it public and deregulated. Now it's a disaster. Power costs as much as 10X what it used to. The company stock is worth shit so the casual investors lost money...except those first investors and bankers who were on to the scheme.

Yep, they hedged their risk, those bankers, through the over-valuing, selling short, then crashing a good company.

You find that acceptable?





Quote:
Originally Posted by Sasha View Post
Wish they would!
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