"Guns Don't Kill..."

The NRA people like to pronounce on a regular basis, that "guns don't kill, people do," and of course they are right in this: someone has to pull the trigger. By the same reasoning, Credit Default Obligations don't destroy either, it's the people who sell and buy them that make poor decisions. Society demands certain standards from people of all sorts who sell things that can be harmful and dangerous under certain circumstances, whether they be guns, liquor or super sophisticated securities.

The spotlight is now on Goldman Sachs and other big Wall Street bankers, as well it should be. The Wall Street they dominate is a travesty of the one I knew. Over and over, on April 27th, I heard Goldman officers tell the Senate Banking Committee (with scarcely concealed disdain) that they were merely market makers, selling to experienced investors what they wanted, regardless of the quality of the investment instrument. There was no concern about suitability or restraint. What could possibly be wrong with that? Gosh, nothing, unless you look at Goldman's efforts to sell CDOs to, say, Greece.

Today's news is that Greece's economy is in a "death spiral" that will greatly damage the European Union and inevitably, the United States. Is it possible that those Greeks weren't quite as sophisticated as "Fabulous Fab", or his bosses? Regardless, impeccable Goldman showed them how to bury debt, keep it off the books, by pledging future revenue no one would ever notice as missing. If they want to buy it, why shouldn't we sell it? The reason is all too evident. The profit motive is enormous, too huge, by a mile. When I was in the Street, I saw people sell dull stuff to their grandmothers for a fat commission. The stakes for "$9,000,000 bonus Lloyd" and "Fab" are much, much, higher and they want every dollar in circulation, even the small change of gullible orphans and widows who became targets of opportunity at an airport. The hell with morality and restraint. They are as uncontrollable as individuals in seeking ever more millions as any drunk in need of rehab. Accordingly, they must be heavily scrutinized and regulated. A hefty bank tax would be fine. So would a windfall profit tax. That's my take.

Children in Very Expensive Clothes

Greed and the pursuit of power have been very much in the news recently. I've read and heard reports, false I hope, of the expense account extravagances of a major bank president and a legendary short seller in the mortgage market. My conclusion is that they are really children in very expensive clothing. Why, for instance would a titan of industry, well into his career, want a $350 glass of wine at lunch? Of course, it's to show off, to establish himself as extraordinarily special, an Alpha dog, and that's hard for me to understand. The same goes for partying with $500 bottles of champagne, unless perhaps the celebrant has just made it into the mega buck world, which is not the case in this instance. I've known many bank presidents, but only one major New York bank president on a social basis. A mature leader type, he wouldn't have dreamed of such ludicrous posturing and nouveau riche behavior. Up on a dinner dias with other big shots, he would describe himself as a "spear carrier." There's something for Wall Streeters to learn here.

I've never made it to anywhere near what today's big bankers make, but because of my own privilege and work, I've observed and known many powerful business leaders and super wealthy types, some quite well. They are predominantly normal people who do not show off and wouldn't dream of lighting a cigar with a Benjamin. They may live in big houses or have a Rolls or a jet on hand, but they are rarely gauche and seldom wasteful. So what is going on with these guys in the news? They are simply today's royal monarchs and they want to be recognized accordingly.

Leaders like the bank president and Wall St pro referenced above aren't worthy of the name. They have little sense of professional responsibility and no more regard for the public than those 17th century monarchs they resemble in so many ways. It is the public that they are out to bilk with some new credit card gimmicks that will entrap them. The public will also buy the securitized mortgages that have been designed to fail. Frankly, I think I prefer the old robber barons to the new breed which I have come to see as a threat to national, if not international, security. After the financial sector is broken up and/or reformed, these people need new, less expensive clothing. Orange jumpsuits would be fine. And hold the wine.

Easter Gifts

I've heard of fathers who have promised their children a new car, or a month in Europe, if they graduate from college and/or stay free of drug or alcohol abuse. These anxious parents don't want to offer too much or too little. So they try for an incentive that is extremely attractive, but not overboard ridiculous. Strong incentives work sometimes, but not always, I guess.

At the Crucifixion, Jesus offered the thief dying on a cross next to him forgiveness and the ability to be with Him in paradise that very day! How's that for generous? "My peace, I give to you," said Jesus, on another occasion. What gifts!! Imagine positively knowing that EVERYTHING is all right, and always will be. Imagine being free of fear and stress. Imagine delight and contentment, despite whatever misery or misfortune the world delivers at any given time. If you believe in Jesus as the Son of God, He has promised that you will have eternal life with Him in Heaven. That's all there is to it. That's the greatest gift possible and somehow it just doesn't seem to register accurately on us. God doesn't measure out his gifts carefully to find just the right balance. He goes hog wild! Bingo! You're in! Forget the bucks and the toys. You've won the jackpot. Happy Easter!