southbeach

Want to Reform Wall St.? Bring Back Partnership Investment Banks

I agree. The asymmetric returns issue was critical what's happened in the last 18 months. Also, let's not pretend what happened was unforeseen. Many people made a ton of money shorting the banks, the real estate players and the home builders. Goldman dumped partnership in favor of cheaper and more efficient capital raising. Also, to compete, all banks had to take more and more risk, and lever up increasingly to generate the right deal and return profile. The US government and financial regulators have been deemed to be asleep at the wheel here, but they were wide awake - just too close to the money and their buddies at the I banks.

Buffett Buys GE, Goldman: Should You Follow?

common stock of GE or GS: not a great investment right now. preferred stock on Buffet's terms: certainly a better investment than the common. there are many gyrations of the markets to come as the recessions hits and then sticks around like an unwanted party guest. I'd stay liquid and save for Q2 09 onward buying opps.