Desert Fox wrote:
For the record I am a terrible engineer. I'm currently a huge draw on society. Also I know plenty of engineers who became IBankers actually.
Your point about making a ton of money then letting it collapse is exactly Ray's point.
These investment firms would package individual mortgages while considering each basically an independent variable. They didn't factor in variables that would be affect large numbers of the mortgages at the same time in the same area, like economic collapse. They imploded their own banks, and without unprecedented government intervention, they would have imploded the global banking system.
I don't think they were nearly as ignorant as they've been portrayed. They might not have been aware of how quickly it could hit the fan, or how bad things could get, but I think they were largely aware of the fact that what they were doing was manipulating products and formulas for short-term gain and long term detriment. Why do they care if the company or the taxpayers end up footing the bill down the line? They'll have already made millions by that point and that
money won't be going anywhere. The REAL ignorance came not from the i-bankers, many of whom made out like bandits, but from some of the macro-decision makers at banks (See: Wachovia acquisition of Golden West). As our system would have it, though, almost all of those incompetent scumbags made out like bandits anyhow.