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CEOs are the ones that realize that the economy is built on confidence. Look at the investigation into Lehman Bros, it centers around who started the rumors th
by fleitz 16y ago
CEOs are the ones that realize that the economy is built on confidence.
Look at the investigation into Lehman Bros, it centers around who started the rumors that they were insolvent, which apparently drove them to insolvency. Our economy is a con game.
Once you realize that is the game they are playing, realize that what a CEO says about his books becomes a self-fulfilling prophecy.
Also, once you have a tool like mentioned in the article, the first people to buy it will be lying CEOs who want to tune their speeches to pass.
- idoh 16y agoIt's not a con game, it is just a weakness of the fractional reserve banking system.
- fleitz 16y agoA con game is a confidence game. There is no reserve in our current system, what asset is backed against the dollar? The answer, the confidence that a future generation will pay the interest on the current debt.
- idoh 16y agoYour answer makes no sense and isn't responsive at all to the issue. We are talking about the need for confidence in banks and the banking system. This isn't something new, all banks face this issue. Addressing your irrelevant tangents: - even when money was backed by gold there were still bank runs - there is a reserve, the cash deposits are backed by cash reserves - I don't even know how you managed to bring the national debt into the picture.
- lupatus 16y agoThe US Dollar is backed by F-16s.
- fleitz 16y agotouche.
- mediaman 16y agoI'm not sure you understand why Lehman went under. It was not because of some mysterious event called lack of confidence that came out of nowhere and drove them to insolvency. Confidence disappeared because the fundamentals of their credit derivative business created massive losses that was driving them to insolvency. You've blamed the symptom for the disease. Business is more than just words coming out of an executives' mouth. There are real dollars, real inventories and assets, that are the basis of the whole field of security analysis, devoted to determining whether a company deserves confidence given the state of its business.