What, just now?
BUT - unfortunately, fraud and absolute incompetence are two different things. One you go to the PMITA prison, the other, you just go higher up the pay grade scale. Hell, you can even be president!
The story, linked above, is a signal, a 'Flare' if you will. It's a signal to run to Office Max to create bird cage 'shredding'.
The question now is, how deep and how long will this crisis hit? Is this a September 11th 2.0? No, because with that, everyone could see the eventual light at the end of the tunnel. Someday the buildings will be rebuilt... or at least people would eventually spend their way out of the bad times.
But, this is different. This is a DUI for unchecked Debt. And it's not just Wall Street. It's Americans in general. How many people, maybe you, are living paycheck to paycheck - and are overextended with stuff you can't possibly ever afford. It's not just deadbeats like myself, but doctors and lawyers who are over extended with huge McMansions, two Lexus-i SUV's in the driveway and credit card debt run out to the max. Nice stuff, but all bought with the 'promise' of paying it back... someday. Guess what? It's someday.
Wall Street is a mirror of Main Street.
The grander implications will be the free availability of credit and the ability to run unchecked debt will put the breaks on the borrow, spend and borrow more lifestyle of corporations, individuals, and eventually the government. Responsibility and only having that which you can afford - now, today, cash in pocket - will be the new prevailing practice.
- Examples will be a return to 30% down on a 30 year fixed mortgage... like the old days.
- College gets harder to get into - because the loan application will be harder than the SAT's.
- Box stores will no longer be able to grow exponentially overnight into cornfields... all based on credit, and future earnings. Bennigan's anyone?
- The government will have to rearrange the deck chairs of entitlement....
- ... or we'll have a tax structure that is 75% of your income. Just like Europe.
- It'll be a lot harder to get that house, shop at those stores - but you'll have some 'free' health insurance.