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| Jon Corzine (center), a former governor of New Jersey and Goldman Sachs chairman, destroyed MF Global. |
The
stunning reality is that five years into the financial meltdown, it's
business as usual on Wall Street - outlandish rewards for insiders with
downside for almost everyone else. Occupy Wall Street protesters are
right - something is wrong - but they're not sure what. Let's revisit
the latest debacle - the implosion of yet another Wall Street darling,
MF Global. The fallout of its bad bets on European bonds is hitting home
hard, even in rural America, where many of its agricultural customers
work. As the eighth-largest bankruptcy filing in U.S. history, MF Global
represents just about everything that is wrong on Wall Street.
1. The
cult of a Wall Street superstar.
2. Gambling disguised as investing.
3.
The bail-me-out syndrome.
4. Enormous conflicts of interest.
5. Leverage
on a grand scale.
6. Failure of regulators and the reform law.
7.
Misappropriation of client funds.
8. Worthless rating agencies.
9.
Golden parachutes soaring high.
10. Breakdown of morality.
Wall
Street will keep sucking huge sums out of our economy and putting 100
percent of us at risk unless the rules change. Most important, we must
stop gambling and start investing again to build valuable companies. The
next crisis will make 2008 look like a warm-up. Imagine how big the
Occupy camps will be if that happens.
Note:
For a treasure trove of reports from reliable sources which provide
detailed information on all the problematic dimensions of Wall Street's
operations described in the article above, click here.
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