Inside look at Wall street

Matt Taibbi is getting a lot of press over his new article in rolling stone about how Goldman Sachs has created every bubble in the stock market since the great depression. In an interview with Sam Ceder he talks about the recent housing bubble and tech bubble of the 90's.

One major issue that Matt touches on is a change in the culture of Wall Street beginning in the early 90's. He argues that that is the time when most investment banks went public with stocks. So the investment banks began to gamble with other peoples money and not so much of their own, as had been the case in the past.

With the tech bubble of the 90's, Matt argues the standard for taking companies public and selling their stock to the World was dropped. So that in the past when companies were taken public they had to meet certain criteria, you had to be around for 5 years, you had to be profitable for 3 years, and you must have great potential to be profitable in the future. In the 90's companies were created the day their stock went public. The world bought these stocks trusting in the investment banks that took them public. Who was the largest undewriter(who took them public), for these tech companies, Goldman Sachs.