Once again, after a few weeks of noting nothing newsworthy, in itself newsworthy an occasion, (besides the bankruptcies of our largest automakers of course, but who didn't see that coming?) I see the New Yorker is on the ball again with a review of a promising new look at the CREDIT DEFAULT SWAP, called FOOL'S GOLD (link here). The "new" financial product is taking much of the blame for the recent implosion of the banking industry, deservedly so, except that the blame should be placed on the person and persons who made them happen without adequate regulation to. The so called "off sight" meetings of the big bankers during this period also looks to be VERY interesting reading.
A morsel of this review:
In June, 1994, when a team from J. P. Morgan went on an off-site weekend to Boca Raton, they conformed to normative behavior in certain respects. Binge drinking occurred; a senior colleague’s nose was broken; somebody charged a trashed Jet Ski and many cheeseburgers to somebody else’s account. Where the J. P. Morgan team broke with tradition was in coming up with a real idea—an idea that changed the entire nature of modern banking, with consequences that are currently rocking the planet.
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