Uh Oh

22:52 Sun 21 Sep 2008. Updated: 17:43 28 Jan 2009
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Goodbye to Wall Street as we know it?

(I’m not concerned for Goldman Sachs or Morgan Stanley—they’ve grown fat and ludicrously wealthy over the years and are now attempting to outrun the consequences of some very bad bets. But if they’ve given in to pressure, or if they have indeed requested, to “reform” as more tightly-regulated entities, it means that they’re extremely worried that the run on their assets will continue if they don’t take drastic measures to reassure people. Which in turn means that even they, reputed to be the smarter banks (for example. Goldman managed to make money from a significant piece of the credit crunch last year), are in too deep. Again, I don’t care about these people. But they’re still immensely powerful, and if there’s colossal financial damage coming, they’ll do all they can so that it rains on us, not them—as the administration’s appalling bailout proposal makes clear.)

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