This crisis proved that Business Schools and Finance Universities are worthless?

Quote from fhl:

why is it that when a bank blows up everyone seems to think that they are idiots and rogues, but when a household blows up ( that is what you would call it when they can't pay their mortgage, isn't it?) they are a victim?
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Because the "too big to fail" crap seems to only apply to the banks. Why is it that when the banks go under they get a free bailout, but when a household blows up they get nothing? While those who lost their homes are indeed idiots, those bankers who should have known better are bigger idiots.
 
Quote from gnome:

Crisis has also shown [proved?] the worth of technical analysis... Do they even teach it in B school?

:p
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How could TA alone predicted the crash?
 
what this proves is that your upbringing and personality have as much to do with trading success as your formal education.

i don't have an MBA but i have risk aversion personality, so i didn't take huge, over-leveraged gambles like these f*ckheads on wall street. that's why i didn't blow out last year.

btw, MBA's are so common now they're virtually worthless. i rank them slightly more valuable than a BA in history.
 
Quote from ScapGF:

If that is what you are asserting then you couldn't be more wrong. This crisis proved that, once again, fear and greed take over in the human thought process. The idiots at the tops of the banks completely ignored risk management and now we see exactly what happens when you do that...a major blowup. [/

First of all, aren't banks regulated by the US Gov.? Banking regulators of congress and the Executive branch have absolute authority over loan to deposit ratios allowed to banks. This train wreck occured under the watchfull eye of both Democrats and Republicans. Great political pressure was put upon Freddie and Fanny to keep buying subprime loans even though that Congress had been warned. This entire crises was caused by intrusive Gov. policies that pressured banks and mortagage co's to apply affirmative action principals to mortgage lending.
Its worth noting that Canadian Banks are unaffected by this disaster. Not one Canadian Bank had to be bailed-out. Reason: Canadian Regulators did not pressure Banks to lower their standards for political reasons.


http://uicifd.blogspot.com/2009/02/canadas-banks-model-in-bad-times.html

http://en.wikipedia.org/wiki/Community_Reinvestment_Act
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