NeedToUseYou -> RE: Greed (3/17/2009 11:53:08 PM)
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I think attempting to eliminate base human emotions is impossible. Instead of stating the obvious, that greed caused it, the question should be how can we limit the destructive effects of greed, while harnessing it's positive motivating force. A friend of mine used to call me mister obvious, because I always answered things by stating the obvious, which for some reason we like to ignore. What I see as obvious, is that greed while it might be the motivator, the reason they were so destructive was because they were allowed to be so large. As in AIG, Lehman, Bank of America, Citi, GM. Those companies and some others, are the ones that posed systemic risk, however, they are not the only ones run by greed. So, the obvious solution in a nut shell, is to break down the oligarchies that control most of any industry. It doesn't just exist in Finance, it exists in everything, and with the push to even greater globalization, the companies that exist, will be every larger in scope, control, and will also offer ever greater systemic risk. So, Mister Obvious, says, don't focus on eliminating greed, that is like trying to eliminate masturbation in boys. Not going to happen, but what we could do is make a hard finish line, that says once you are X big you must break apart. What the dollar amount of X would be would up for debate. But a GM surely would not be in existance, in its present form, a Bank of America would be 10 banks, an AIG would 30 seperate companies. ETC..... How to enforce that in other countries is a question, tarrifs I suppose, against companies exceeding the company size limit, maybe. who knows, but I do know the problem is one of size, greed is only a problem, when the person has the power to destroy you if you don't give him what he wants. No company should be that large as to force that demand upon a nation. As is we do the opposite we encourage megacorps to move in, while siphoning money from the small businesses to fund the grants. Wal-mart sometimes gets special tax rates even. It's simply stupid, to encourage the concentration of wealth beyond a reasonable level. I think reasonable would be like 20-30 billion tops for any company ever. That will get the job done.
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