BP’s oil leak and Bankers’ dervatives are similar downstream distasters

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If you think about it everyone is coming down heavily on BP for allowing the underwater well to burst. BP is to pay for the clean-up and livelihood losses of fishermen in the coast for the downstream disaster from the oil leak. Metaphorically speaking Goldman Sachs and the Banking sector created derivatives and sold them onward and forgot the basics in banking : "stay close to the customer." The derivatives turned out to be like the oil leak to coastal flora and fauna – devastating to millions in America and the world.

I guess it is easier to actually see the oil spill and the  poor oil-coated birds and everyone gets angry. You really don't see the moving derivatives move from bank to bank  and connect the dots to the  home foreclosure signs or unemployment lines.

Call it the paradox of the "service" economy where those creating products whether auto or oil seem to face far more public and thus political wrath (when things go wrong) -than the banking and investment folks who failed to "cap" the mortgage well as it started leaking with disastrous downstream consequences.

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