Ken's Corner

It has been a little more than one year since Lehman Brothers was allowed to collapse, triggering a wave of global financial panic, the likes of which three generations have not witnessed.  We will probably never know how close we came to economic armageddon and the corresponding nuclear winter that would have followed. 

 The actions and inactions of those that brought about “The Great Recession,” as it is now called, have been analyzed over and over again, and a common thread that continues to emerge is that “smart” people on Wall Street  as well as “geeks with calculators” were taking massive, (highly leveraged) risk with other people’s money.  As the greedy became even greedier, stockholder equity and client capital became increasingly compromised…. exposed to the reality of what always happens when leverage goes bad.