Don't Blame The Short-Sellers

Guess what? Up until 2003, all US investment banks were allowed only 12 to 1 leverage. Then in 2004, the U.S. Securities and Exchange Commission gave five banks (and only five banks) the ability to lever up 30 or even 40 to 1. Guess which ones they were then? Bear, Lehman, Merrill, Morgan and Goldman. Three men down and two walking wounded.

So whilst they point the finger at short-sellers, they really want to be pointing it at themselves, and the management of the Five Horsemen of the Apocalypse who leveraged themselves up to 40-1 with bad investments.