As everyone knows, I work for a hedge fund and the last few months have been very difficult. I came across Brett Arend’s column in the Wall Street Journal this week and one of his investing rules to toss out the window is pretty funny(take not of the last line, a real classic):
Rule #3: Wall Street bankers know what they are doing.
Reality: Almost none of them saw this coming. The people running Bear Stearns didn’t even know how much their own bank was worth at the end, let alone their loan book. The head of Citigroup was still betting on subprime loans last July, months after the industry had hit the iceberg. How many Harvard MBAs and Chartered Financial Analysts does it take to lose a trillion dollars on subprime mortgages? We’ll let you know when this is all over.