Thursday, January 17, 2008

What Does Goldman Know...

At, Michael Lewis discusses how Goldman Sachs managed to protect itself from the subprime morass:

"But at Goldman there were two intelligences at work: one, the ordinary Wall Street intelligence, which was allowed to get itself in trouble, just as at every other Wall Street firm; the other, more like an extremely smart hedge fund that made its living off the idiocy of big Wall Street firms, including its own people.

A Higher Intelligence

And this second, higher intelligence was allowed to make a mockery of the labors of the first. I can't think of another example of a big Wall Street firm saying so clearly through its trading positions as Goldman Sachs did over the past year that it thinks the rest of its industry, including its own people, is a bunch of idiots. They have obviously designed their firm to take into account their idiocy -- without ever having to put too fine a point on it."


(via The Big Picture)


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