Fraud and Investment Bankers.

Barely 18 months ago, in October 2008, Investment bankers had brought the world to the brink of destruction.Their unbounded greed had no parallel in the history of mankind.

As time passed by, it seemed that greed had won the day, with no penalties imposed on these people.

Today, justice seems to have started its work. Bloomberg says:

“Goldman Sachs was sued by U.S. regulators for fraud tied to collateralized debt obligations that contributed to the worst financial crisis since the Great Depression. The firm’s shares tumbled as much as 16 percent and financial stocks slumped. ”

I do not think this is the end. There will be many more such investigations, cases, attempts to bring the perpetrators to justice. And, it will happen in India, also. [we did not have subprime problems, but we have the same kind of greed].

The Markets are not perfect, but they are the best we have

Note how the Nifty remained in a narrow trading range, then broke down from the range on Thursday. A breakout / breakdown from a trading range is a significant technical event. My recent posts have discussed this.