So before anyone reads this post, they should probably at least have the opportunity to read where it is coming from...
http://www.thedailybeast.com/newsweek/2011/12/25/wall-street-has-destroyed-the-wonder-that-was-america.html?utm_medium=email
This is a very interesting, somewhat confusing article about how wall streets functions have really destroyed American wonder. The article really focuses on how these wall street ideals that lead brokers and bankers to "promote and execute deals, sit on boards, kiss ass, and lie through (their) teeth." But to me that poses an interesting question. I think its foolish to think that at one point or another, someone would not act upon their own self interests, even if they say that they will always do whats good for all. The piece also mentions that most wall street "workers" (for lack of a better term) believe that the public is always wrong. It also mentions how everything that has happened in the past 3 years in terms of the financial crisis was not the government's fault, and wall street is about to get with something it has had coming for a long time.
To me, the piece makes a lot of sense, because of what we have seen around us in the last 10 years or so, really beginning with the Enron scandal (at least that's the earliest scandal I can really remember from my childhood). It sort of goes back to Okun and the equity vs. efficiency debate. Can Wall Street function efficiently if those big executives aren't getting what they want?
The big executives need to make compromises in order to reach some sort of efficiency.
ReplyDeleteI think the big executives are merely exploiting a system that needs to be reformatted. I think that it's unfair to say that everything is wall street's fault and take any sort of blame away from Mr. Obama and the folks in Washington. I agree with Mike that at some point we have to look out for ourselves because I'm fairly certain that I would be cutting corners and finding loopholes if they were available so that I could put a little extra cash in my wallet. But that's just me and I'm a bad person with questionable ethics. Great post though, Mike.
ReplyDeleteJust kidding. But I really think that there is a bigger problem than what is happening on Wall Street. There is a reason they are able to exploit the system and until we change the system to prevent them from exploiting it and padding their pockets we will keep having this problem.
ReplyDeleteDespite Lamrock being a bad person with questionable ethics, I think there are some good people working on Wall street. The author is putting 100% of the blame on Wall Street. I disagree. Not everyone is some criminal like the author tries to make it seem like. Greed is a natural feeling and a few people let it takeover wall street and everything backfired. That's called Capitalism. Sometimes it happens. The market responds to whatever humans are doing. Once we stop behaving like we shouldn't be (on a national level, not just wall street, but especially them) the market will fix itself. This is not just a problem for the 1% or the 99%, it's a problem for the whole 100% of Americans
ReplyDeleteWall Street has always been very questionable in terms of ethics. It seems as though to work on Wall Street, one must put his conscience aside to do his job that is make money. It is just the nature of the business. This reminds me of the book Liar's Poker. And for the markets, they are efficient, and they will fix themselves.
ReplyDeleteI think that Mike is right in the point that he says that people should not just blame each other and say that the government is not at fault at all. I agree with Cate when saying that executives have to make compromises in order to make the market efficient. The problem is that the markets are not that efficient because it will never be completely efficient but its how people react to the market and what loopholes the people take. Good Post though
ReplyDeleteI find it hard to place all the blame on the people of Wall Street. I understand that there are the exceptions of the money mongers who seemingly do any and all things to make themselves better off despite what laws they must break or who they harm, however I find it hard to believe that any of the 99% would not be doing the exact same if they were in the 1%'s shoes. I think it comes down to having to fix the system itself; that being said, I can't imagine it being an easy task to do.
ReplyDeleteOn the second page of the article, Thomas writes, "The 99 percent must learn to differentiate the bloodsuckers and rent-extractors from those in the 1 percent who make the world a better, more just place to live." I feel that Thomas makes a compelling point here. I feel as though OWS has declared war on all those people that reside in the 1 percent. Protesters may be generally frustrated with those that live extravagant lifestyles while others have trouble finding employment. However, it is important to note that 99 percent are not simple bystanders to the growing economic problems in the United States. Inefficiencies in our economic system create loopholes for few to prosper at the expense of the masses. It is important to note that these inefficiencies are exploited by both sides. For example, inefficiencies associated with the welfare system allow people to take advantage of a service that is critical to many families. Rather than pointing to the 1 percent as the root of the problem, people should evaluate the strengths and deficiencies of the systems we depend on. Restructuring of the certain systems have the ability to appease both sides.
ReplyDeleteWall Street from the beginning has been corrupt. Lamrock makes a good point in saying that the majority of people, if put in a high executive position, would make decisions that benefited their self interest. It is human nature.
ReplyDeleteWith that being said, the system needs to change. As the author points out, Occupy Wall Street has done a fantastic job in making the public aware of “a sinister, usurious process by which wealth has systematically been funneled into fewer and fewer hands.” For this reason, I think OWS will be an enormous benefit to the future of America’s economy in that it promotes awareness and change.
As Grant points out, this process is not going to be easy, but thankfully we live in a country that enables the people to take action when corruption is exposed.
Thanks, Mike, for a great article!
I dont overly agree with Lamrock. I think there are some people that are making decisions that are benefiting everyone, but the problem is there are to many people just looking out for themselves.
ReplyDeleteI'd have to say I agree with Jon.
ReplyDeleteUnfortunately, I would lean toward agreeing with Lamrock. I can't say that if I were an executive on Wall Street that I would be inclined to do anything except make a profit for my share holders and myself. The problem is not in the people that are making money it is in the system which enables it. Don't hate the player hate the game.
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