tag:blogger.com,1999:blog-1461700565722278823.post2465340924606043875..comments2024-02-27T14:44:07.868+01:00Comments on Greedy goblin: What are we?Gevlonhttp://www.blogger.com/profile/07072766785893313616noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1461700565722278823.post-1119598711876103502010-05-06T15:03:28.303+02:002010-05-06T15:03:28.303+02:00My understanding was that the financial crisis/dep...My understanding was that the financial crisis/depression/whatever was not due to mismanagement by any one company; it was a systematic failure due to lack of control of the risks in derivative financial instruments, or overspeculation with no ability to mitigate the inevitable market shift. The lack of regulation due to lack of agility of or incentive for agencies/governments to regulate the allowed financial instruments being traded and their risks. Maybe related to <a href="http://en.wikipedia.org/wiki/George_Soros" rel="nofollow">George Soros</a> but I didn't keep up, sometimes I forget it happened 1-2 years ago. Maybe you could say it is the general reason for regulation of markets: inability to accurately predict risks and externalities of risks, or because no one was selling insurance for the planet Earth's economic stability. I think there was a blog entry on that, but I deleted it because it was bad or vague or another reason. *just in draft mode, "...a free market does not always result in the most stable or efficient of frameworks. Mitigation of risk in one direction may result in uncontrolled risks that are absorbed by the framework, until a limit is reached and the market's expectations reverse."<br /><br />this comment is probably not worth publishing.Taemojitsuhttp://daughterofankh.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-1461700565722278823.post-90167111804368120112008-10-27T14:29:00.000+01:002008-10-27T14:29:00.000+01:00The more I read here the more I like it. Well thou...The more I read here the more I like it. <BR/><BR/>Well thought out as always. this whole series has really made me think. (and that could be bad since I am on vacation, lol)<BR/><BR/>One thought for you on the communism concept. Could not a guild, particularly since the advent of the guild bank, be considered a type of "collective"?<BR/><BR/>Granted you can leave whenever you wish. Also unless specific guild rules are in place you are not "required" to contribute to the guild as a whole. However on paper at least it would seem to be a group of people cooperatively working towards the same goals.<BR/><BR/>I don't quite see it that way, but would be really interested in your opinion on this one.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1461700565722278823.post-7845097399913936872008-10-27T09:00:00.000+01:002008-10-27T09:00:00.000+01:00@dradis: I'm completely aware that the CEO's job i...@dradis: I'm completely aware that the CEO's job is decision making, to rule the company instead of the owners (usually stockholders who may don't even know the name of their company).<BR/><BR/>My point is this responsibility cannot be transferred to an employee. Since he is interested in his annual salary, he will take risky actions since the loss of the company value is not his loss.<BR/><BR/>In other example: in Eastern Europe, under communist regime, the companies were owned by the "people" (theoretically every citizen had equal share of stocks). The companies were directed by employee-CEO-s and this scheme caused the GDP of Eastern European countries to be just the fraction of the EU average. The only difference between this pure communism and Lehman-like scheme is that in the latter the individual stockholders had the power to sell their stocks if they disliked the CEO.<BR/><BR/>I'm also agree that they morally deserve no salary, still they got it. (http://www.associatedcontent.com/article/1055035/bankrupt_lehman_bros_to_pay_staffers.html)<BR/><BR/>I think what happened to the Lehman and such is not mistake but inevitable consequence of non-owners leading the company.Gevlonhttps://www.blogger.com/profile/07072766785893313616noreply@blogger.comtag:blogger.com,1999:blog-1461700565722278823.post-63752817070184331072008-10-27T08:37:00.000+01:002008-10-27T08:37:00.000+01:00I would have to respectfully disagree with some of...I would have to respectfully disagree with some of your assessment. The CEO, CFO, COO, etc are all directly responsible for the performance of the company. True they are employees, but they are decision makers and policy makers. They develop strategies and approve requests. In large companies like Lehman Bros, there is not a single owner. There is Board and there are shareholders. These are the owners. For the most part if the Board is making money and the shareholders are recieving dividends, then they don't care what is going on with anything else.<BR/><BR/>Further more, hiring and firing of employees can be controlled by the Executives more directly and efficiently then the Board and control the hiring and firing of Executives. <BR/><BR/>Had the Executives done their job better at each of the companies, we would not be in the situation we are in right now. They deserve zero compensation because the did NOT do their job. Quite the opposite. <BR/><BR/>The janitor on the other hand probably cannot even choose the brand of toilet cleaner he gets to use. He has zero control over the company. The same goes for anyone who is not management. The management has an increasing level of responsibility for the success and failure of any company as you move from lower management on up to the Executives. As such they should be compensated according to the position they held. The higher up you are, the less you recieve. <BR/><BR/>Just as an example, poor management at a local McDonald's can ruin that location until new management is put in. However, if those higher in the chain don't care, don't notice, or even find the performance level acceptable, it will eventually come back and destroy the reputation of McDonald's on the whole. Of course it would take a monumental effort to achieve that, but the financial sector figured out how to do.Dradishttps://www.blogger.com/profile/10399533105778599010noreply@blogger.com