Beginning of the Economic Downturn

The Chinese wall came down, then everything else followed.

When the government made the decision to let the Chinese wall rule disappear, that’s when once again the whole Country went into massive madness just like back in 1929.

The Chinese wall came into investing in 1929, when the separation of investment banking from brokerage operations took place, The Chinese wall protects against conflict of interest.

When the banks have all the power, all the information and they are allowed to make economic decisions and give advice to the bank depositors; then is when the conflict of interest arises.
Banks only concern is to increase their profit immediately, not thinking of the long term consequences. Humanity keeps on making the same mistakes over and over again.
As a former stockbroker I was concerned when i realized, that banks could now advise their clients where to invest and what to do with their money.

The government again makes a huge mistake thinking that Banks can regulate themselves, at the same time this was happening the September 11 attacks occurred and the Stock-market was closed for 3 days, everybody was in panic and the portfolio value of most Americans went down a lot. Financial advisers, investment bankers, banks, they all were wondering where our big, fat paychecks were going to come from now. All the financial gurus know that when markets are down, real estate goes up……but financial people are not real estate brokers so lets invent something totally new..Collateral Mortgage Backed securities. Brilliant idea well packaged really nice and then we are in business again.

I had a bad feeling about the U.S.A and I went to Europe looking for adventure, knowledge, and because I knew the Euro was going to be a very strong currency. In the mean time in the United States real estate got a big push from the banks and everyone else involved in the selling of collateralize mortgage backed securities.

Nobody was watching anybody, everybody was to busy making money and then one day after every American though they deserved to live way above their means because their banks and their advisers where letting them do so. Money ..hard cash dried up.

Here we are today where the government is suing the banks for securities-law violations and negligence.

I want the Chinese wall back…otherwise who is going to protect us from our own stupidly and the bankers greed.


People also view

Leave a Reply

Your email address will not be published. Required fields are marked *