Sunday, June 07, 2009

"Michael Lewis: Wall Street Made This Mess And Is Making Fortune Cleaning It Up' (with video)

CNN with video (10:12):

Michael Lewis, the former Salomon Brothers trader who wrote "Liar's Poker" about the excesses of Wall Street during the 1980s, delivered a devastating critique of the financial industry and of the government bailout today on CNN"s "Fareed Zakaria GPS."

Lewis thinks that the government's rescue efforts have only served to postpone a "day of reckoning" for Wall Street:

I think that we are in for another day of reckoning down the road. I just don't know when it is.

I think that they haven't even properly evaluated the institutions.

They haven't been honest about what these institutions have on their books. They've had phony stress tests.

So, we're in a kind of, I think, right now, in a period where there's a false sense that it's over, that the crisis is passed. I don't think the crisis is passed.

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