American Republic Online

Wall Street trader Michael Lewis shares some lessons regarding the subprime blow up:

So right after the Bear Stearns funds blew up, I had a thought: This is what happens when you lend money to poor people.

Don’t get me wrong: I have nothing personally against the poor. To my knowledge, I have nothing personally to do with the poor at all. It’s not personal when a guy cuts your grass: that’s business. He does what you say, you pay him. But you don’t pay him in advance: That would be finance. And finance is one thing you should never engage in with the poor. (By poor, I mean anyone who the SEC wouldn’t allow to invest in my hedge fund.) [net worth <$1 million.]

He leaves us with five lessons regarding “poor people:”

1) They’re masters of public relations.

2) Poor people don’t respect other people’s money in the way money deserves to be respected. 

3) I’ve grown out of touch with “poor culture.”

4) Our society is really, really hostile to success. At the same time it’s shockingly indulgent of poor people.

5) I think it’s time we all become more realistic about letting the poor anywhere near Wall Street. 

Read on for the explanations.