Wall Street finance is way too complicated for most people.
“The Big Short. And the bankers of all stripes—commercial, investment, private equity—have gone astray and run us over a cliff. The citizen who wants to understand this need only read Michael Lewis’s The Big Short.There one can inspect a financial system that is rotten at the core. Products that were clearly worthless were foisted on investors. Bundles of flawed mortgages, which would never get paid, were repackaged as bonds and then peddled to institutions and investors alike. Earnings from structured finance became so big a part of Wall Street profits that the firms in lower Manhattan, as well as in midtown, would have shriveled up without sales of the totally hollow products ginned up around housing. It is hard to have a healthy society when such a huge part of it—the financial community—is living a lie.”
Hedge funds….structured finance….etc. impact all businesses regardless of size….unfortunately most businesses don’t have that intimate knowledge of Wall Street finance.
The lesson from the financial missteps….be astute in managing a business finances.