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March 18, 2008

What’s really wrong with Wall Street

Post-Bear Stearns collapse, the Street is coming in for more critical analysis. In a nutshell this article gets a lot of things right.

The two main issues, it says, are a love of trading, rather than fee-based services of other financial sorts, and a love of leverage.

Trading moneys, vs. fee-based services, have been steadily rising in recent years. And the alphabet soup of derivative investment vehicles speaks enough of the rising infatuation with leverage.

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