More Evidence Memories Don't Exist

The WSJ has a story about massive mortgage frauds likely causing a large portion of foreclosures. Bear, Stearns and other aggressive mortgage underwriters got scammed. Why ? They really didn't check anything. I guess they "forgot" about the equipment leasing frauds of the 1980s, etc. or the Equity Funding fraud of the 1970s; Or the "salad oil" fraud of the 1960s.

Many people take out balloon loans. Of course if anything bad happens to them when the balloon comes due, they won't be able to refinance it. Uh ... this lesson was learned in the 1930s.

MS, BS, etc. lose huge sums on "one desk" - uh ... anyone remember how Kidder, Peabody and Barings went bust ? Or how a rogue trader cost ML hundreds of millions ?

The Street pays these guys huge sums for years as they "make millions" for the firm ... then the firm loses billions when they blow up. Street management is just stupid, frankly. They are lazy and stupid and greedy. They should pay these people ultra-well ... in stock and tied up cash based on a moving average of profits. So if the guys blow up, the bonus gets yanked back.

Then the hotshots might actually think a bit ... playing with their own money at risk might actually induce some thinking.

And now I read Cerberus is in trouble. Maybe Apollo, too. No surprise. LBO and hedge funds play with others' money and blow ups from greed are quite probable there, too.

Futures are up early on this triple witching day. Europe is up as was Asia.

PS: It appears some major gaps on the S&P and Nazz were filled on this pullback. I'd be interested in comments from the "gapmeisters" if this is true.