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The Real Roots of the Crisis
- Judson 17y agoWhile the story is true to some degree that "We didn't care", I think it all ties back to government agencies that allow businesses to operate on a very risk tolerant threshold; More than the free market would have allowed. Take for instance, the FDIC, which allowed banks to only hold some kind of ridiculous percentage, say 10%, of all demand deposits, and the fee the FDIC charged to "insure" banks holdings was very small. There is not an insurance company in the world that would allow anyone to lend out 90% of their money stock and insure it all for almost nothing. The government sets up safety nets which allow people, who are inherently risk conscious, to stop caring about risk.
- carterac 17y agoIt is interesting though how much he emphasizes culture. I think that today we are seeing more and more large companies take such a primary focus on it. For Zappos it is their priority. Google is also very notable for this. It used to be all gesture with out real motion. Think Enron with values like "Integrity" chiseled into marble in their main lobby. This is something I am very excited about for our future. More thoughtfulness around company culture.
- jmount 17y agoThe louder the noise the more they have to hide. Check out the beautiful Enron code of ethics: http://www.thesmokinggun.com/enron/enronethics1.html http://www.thesmokinggun.com/enron/enronethics1.html .