On 07/16/2016 07:22 PM, Russell Reiter via talk wrote:
On Jul 16, 2016 4:54 PM, "James Knott via talk" <talk@gtalug.org <mailto:talk@gtalug.org>> wrote:
On 07/16/2016 04:42 PM, Russell Reiter via talk wrote:
The wallstreet guys came up with a method to manage risk and it worked well till everybody used it then all the risk was back but in a slightly different form.
Could you clarify that? I think I have a different opinion about wall street risk management than you do.
Sub prime mortgages decimated Fannie May & Freddy Mac. Enron wiped out pensions and Bernie Madoff got 150 years in the slammer for his Ponzi scheme, pretty much all within the last decade.
A big part of the problem is business has been claiming they need deregulation to grow. Well, that,
I recall it more as threats to relocate to jurisdictions with lesser regulations, which they did anyway after getting major concessions from unions and government regulators.
Rule #1 is corporation executives are responsible to increase shareholder value. If you do that by killing millions of people your obligation is to kill them and increase the profits. There is no obligation to deliver a safe or quality product or service. The guy who bought the low margin low volume drugs and increased the prices by a few thousand times did the right thing. He is in jail not for breaking some other unrelated rules. Rule #2 is do whatever it takes to increase your personal compensation. With those 2 simple rules most all of the business events of the last 50 or so years make sense. -- Alvin Starr || voice: (905)513-7688 Netvel Inc. || Cell: (416)806-0133 alvin@netvel.net ||