Thursday, October 04, 2007

Greed Doesn't Pay

Deutsche Bank writes off $3.12 billion from US mortgage problems

Thanks U.S. for sharing!. That hurts, even with help from other divisions. Deutsche Bank now joins fellow European bank UBS who were also caught up in the mortgage mess. Don't forget about the nearly collapsed Northern Rock in the UK.

I can't feel too sorry for these folks. To a large degree their greed led them to invest in the faux securities backed by the basically worthless mortgages. If they hadn't strayed from the traditional forms of making money in the financial markets they wouldn't be caught short like this.

This is only the beginning. I am sure we will see more of the results of greed come into play in the near term.

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