http://www.businesspundit.com/madoff-and-how-he-can-benefit-american-culture/ Entrepreneurship, Startup Companies and Business Philosophy Fri, 20 Nov 2009 20:31:15 -0600 http://wordpress.org/?v=2.8.5 hourly 1 http://www.businesspundit.com/madoff-and-how-he-can-benefit-american-culture/comment-page-1/#comment-11820 Alan McRae Tue, 06 Jan 2009 14:26:22 +0000 http://www.businesspundit.com/?p=7155#comment-11820 You're right, but you're still being too easy on The Street. Our financial sector, like Enron's internal analysts & sales minions, knew quite well that ever riskier investment instruments were being marketed as sound portfolio components, and that "lack of transparency" has been the hallmark of insider power brokers for some time now. Every time a courageous whistleblower comes forward in the financial, political, scientific and business sectors we get a glimpse at how things actually work at the top, and how they flow down to the frightened, compliant minions who actually facilitate the dirty work to the victims. Obviously keeping well-heeled clients comfortable while one shears them of a little of their riches is how the game is played, and saving them from the follies of their own boundless greed is not in the job description. Still, one learns that some CPA's were advising their clients to place all of their retirement funds with Madoff, a violation of very basic investment strategy guidelines and a colossal breach of fiduciary trust. At the root of all of this is a single cause: the erosion of regulations & ethical boundaries that were originally created to protect us all from EXACTLY these kinds of abuses of power. Having forgotton, or simply conveniently set aside, the lessons of the Robber Baron Era, American society has created a black hole that threatens to swallow up the national & global economies. Better hope that Barack Obama, who had the wisdom to shun the soulless, amoral greed of The Street in favor of meaningful community service, can lead us back to more sustaining values and "the angels of our better nature". Know that our collective failure to restrain our business leaders has propelled us to the brink of global socioeconomic chaos, so there is no way back onto solid ground other than doing the right thing. The Founding Fathers understood the necessity for checks & balances on all forms of power, and now we know first hand what happens when power slips its reigns and operates without transparency. Prudent regulations are not undue restraints on our "top producers" - they are the only thing between us and the catastrophic excesses of power. Re-read your history books if you've forgotten this painful lesson. You’re right, but you’re still being too easy on The Street. Our financial sector, like Enron’s internal analysts & sales minions, knew quite well that ever riskier investment instruments were being marketed as sound portfolio components, and that “lack of transparency” has been the hallmark of insider power brokers for some time now. Every time a courageous whistleblower comes forward in the financial, political, scientific and business sectors we get a glimpse at how things actually work at the top, and how they flow down to the frightened, compliant minions who actually facilitate the dirty work to the victims. Obviously keeping well-heeled clients comfortable while one shears them of a little of their riches is how the game is played, and saving them from the follies of their own boundless greed is not in the job description. Still, one learns that some CPA’s were advising their clients to place all of their retirement funds with Madoff, a violation of very basic investment strategy guidelines and a colossal breach of fiduciary trust. At the root of all of this is a single cause: the erosion of regulations & ethical boundaries that were originally created to protect us all from EXACTLY these kinds of abuses of power. Having forgotton, or simply conveniently set aside, the lessons of the Robber Baron Era, American society has created a black hole that threatens to swallow up the national & global economies. Better hope that Barack Obama, who had the wisdom to shun the soulless, amoral greed of The Street in favor of meaningful community service, can lead us back to more sustaining values and “the angels of our better nature”. Know that our collective failure to restrain our business leaders has propelled us to the brink of global socioeconomic chaos, so there is no way back onto solid ground other than doing the right thing. The Founding Fathers understood the necessity for checks & balances on all forms of power, and now we know first hand what happens when power slips its reigns and operates without transparency. Prudent regulations are not undue restraints on our “top producers” – they are the only thing between us and the catastrophic excesses of power. Re-read your history books if you’ve forgotten this painful lesson.

]]> http://www.businesspundit.com/madoff-and-how-he-can-benefit-american-culture/comment-page-1/#comment-11804 Betsy Wuebker Mon, 05 Jan 2009 20:59:51 +0000 http://www.businesspundit.com/?p=7155#comment-11804 You're right. This scenario played out over and over, nothing but "you don't rat out someone in the gang" on steroids. Greed was at the heart of it. Media clips over the weekend cited Hadassah and other organizations attempting to minimize losses by citing gains were primarily bogus in nature to begin with. It would be interesting to see how much additional credit/activity occurred due to leveraging those suddenly fake gains. You’re right. This scenario played out over and over, nothing but “you don’t rat out someone in the gang” on steroids. Greed was at the heart of it. Media clips over the weekend cited Hadassah and other organizations attempting to minimize losses by citing gains were primarily bogus in nature to begin with. It would be interesting to see how much additional credit/activity occurred due to leveraging those suddenly fake gains.

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