Wall Street Casino Ignores Lehman Brothers Warning

One year after the collapse of Lehman Brothers due to the excessive use of leverage and poor management decisions the Wall Street Casino is being managed as if the Lehman Brothers collapse never happened.

While congress and the Obama administration have held hearings about what happened when, where, and why, the regulatory environment has not been changed. The Obama team seems more interested in restoring the economy and Wall Street to the good old pre-Lehman collapse go go days than in front running new regulation that would tone down Wall Street’s wheeling dealing reckless ways.

In fact Goldman Sachs, Morgan Stanley, and other Wall Street firms and banks seem to be ramping up the rapid fire trading techniques and the use of excessive leverage and poor underwriting practices that lead to Lehman’s demise.

With no real move underway to get tough with regulation to control Wall Street’s greed factor the liklihood of a repeat crisis is high. However, with the Federal Reserve Bank’s and the Treasury Department’s balance sheets so weakened by the effort to prevent a full meltdown from the last crisis the next one to come along may well be worse, perhaps even fatal to the fate of the US Dollar and to the state of a healthy US economy.