Saturday, June 23, 2012

Wall Street's Bid Rigging Scandal

Three Wall Street bankers have been found guilty in a trial which exposed how Wall Street banks collude to screw municipalities out of vast amounts of money.  And the scandal may grow to show that Wall Street is screwing them coming and going.

I have a small bone to pick with Matt Taibbi's characterization that Wall Street learned this from the Mafia.  Back in 1776, Adam Smith wrote in the Wealth of Nations:

People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.

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