{"id":200360,"date":"2021-04-30T19:06:00","date_gmt":"2021-05-01T00:06:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2021\/04\/30\/headline-of-the-day-156\/"},"modified":"2021-04-30T19:06:00","modified_gmt":"2021-05-01T00:06:00","slug":"headline-of-the-day-156","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2021\/04\/30\/headline-of-the-day-156\/","title":{"rendered":"Headline of the Day"},"content":{"rendered":"<blockquote><p><span style=\"color: #2b00fe;\"><b><span style=\"font-size: 120%; font-variant: small-caps;\">Will &#8220;Goldman Penis Envy&#8221; Crash the Economy Again?<\/span><\/b><\/span><\/p>\n<blockquote><p><span style=\"color: #2b00fe;\">\u2014<a href=\"https:\/\/taibbi.substack.com\/p\/will-goldman-penis-envy-crash-the-da9\">Matt Taibbi<\/a><\/span><\/p><\/blockquote>\n<\/blockquote>\n<p>The point of his article is that there are a lot of actors in Wall Street like Lehman, who are small enough that they feel that they have to massively over-leverage to compete with the Vampire Squid, but large enough to crash the system.<\/p>\n<\/p>\n<blockquote><p><span style=\"color: #2b00fe;\">\u201cWe called it \u2018Goldman Penis Envy,\u2019\u201d says Lawrence McDonald, former Lehman trader and author of <i>A Colossal Failure of Common Sense<\/i>. In telling the Gelband story, he explains that Fuld and Gregory were so desperate to beat out Goldman and become the richest men on Wall Street, they chased every bad deal at the peak of the speculative bubble.<\/p>\n<p>\u201cThese tertiary financial institutions, in order to win business away from the big players, they have to continually juice their offerings, offer more leverage, more goodies,\u201d says McDonald. \u201cDick and Joe, they wanted to do these banking deals, to steal Goldman\u2019s business by offering more.\u201d<\/span><\/p><\/blockquote>\n<p>He&#8217;s suggesting that the collapse of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Archegos_Capital_Management\">Archegos Capital Management<\/a> is a taste of things to come.<\/p>\n<p>He&#8217;s probably right.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Will &#8220;Goldman Penis Envy&#8221; Crash the Economy Again? \u2014Matt Taibbi The point of his article is that there are a lot of actors in Wall Street like Lehman, who are small enough that they feel that they have to massively over-leverage to compete with the Vampire Squid, but large enough to crash the system. \u201cWe &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970,1004,1164],"tags":[],"class_list":["post-200360","post","type-post","status-publish","format-standard","hentry","category-corruption","category-finance","category-teotwawki"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/200360"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=200360"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/200360\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=200360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=200360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=200360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}