6 ms·
Alan Greenspan, on his way out, famously said > he had made a "mistake" in believing that banks in operating in their self-interest would be sufficient to prot
by imglorp 9y ago
Alan Greenspan, on his way out, famously said
> he had made a "mistake" in believing that banks in operating in their self-interest would be sufficient to protect their shareholders and the equity in their institutions. Greenspan said that he had found "a flaw in the model that I perceived is the critical functioning structure that defines how the world works."
It's not a stretch to apply it to all C-levels at all public companies: they will absolutely manipulate the company to benefit themselves at the expense of the shareholder.
https://www.cbsnews.com/news/greenspan-my-faith-in-banks-a-mistake/ https://www.cbsnews.com/news/greenspan-my-faith-in-banks-a-m...
- gowld 9y agoHe built his entire career, as a leader of USA financial policy, as a hardcore Randian Objectivist (he was a close friend of Ayn Rand herself, probably the most powerful Randian in the world), and then on the way out said "oops, I was wrong"?
- cromulent 9y agoYes, he did. "You found that your view of the world, your ideology, was not right, it was not working?" Greenspan agreed: "That's precisely the reason I was shocked because I'd been going for 40 years or so with considerable evidence that it was working exceptionally well."
- JoeAltmaier 9y agoThis is my sister's observation after 20 years in manufacturing. All her experiences at the executive level were of folks manipulating the company to get their bonuses regardless of the damage they did. They'd simply move on when a company failed. She got sick of it all after 20 years, and now runs a chocolate shop in semi-retirement.
- rbanffy 9y ago> They'd simply move on when a company failed. And often the failing company would even pay for the outplacement consultants.
- dsacco 9y ago> It's not a stretch to apply it to all C-levels at all public companies: they will absolutely manipulate the company to benefit themselves at the expense of the shareholder. No, that actually is a stretch, essentially by definition.
- imglorp 9y agoHow are c-execs of public corps different from c-execs of other corps? They all get a bonus metric to meet and have the opportunity to game the hell out of it.
- dsacco 9y agoYes, they have the opportunity. That does not mean that all will, nor does it mean gaming it is actually in their best interest all the time.