Wall Street wizard John Paulson “only” lost $107 million for his investors because he did such a thorough job of investigating Sino – Forest, the fraudulent Chinese timber company. Imagine the damage had he and his team been less diligent! I’m beginning to think that Wall Street is filled with lazy, greedy idiots who hit an occasional home run from pure circumstance and then lose it all like some drunken Atlantic City gambler when the odds catch up with them. This is a business?
UPDATE: My dad wore a number of hats at White, Weld and Company before Merrill Lynch bought it out and ruined it in the late 1970’s (and don’t think I didn’t cheer when those assholes burned up in 2007) but one of his jobs was to evaluate mining companies, and by God, he’d go to the Philippines, Australian and Canadian copper and gold mines and interview the mining engineers and examine their data. Of course, he was Yale ’27, Columbia MBA ’29 and might have actually known something about what he was looking at but my guess is that he felt an obligation to look for and detect bullshit before passing it along to clients of the firm. Things seem to have changed.