These can be used to distinguish between two mind sets in order to examine the basis for the current financial problems in which we, the taxpayers, are bailing out the stupid and the greedy (who are thought to be smart due to their money grabbing successes -that, of late, are being shown to have been more of ponzi than of substance [thanks, Minsky]).
Okay, Ben's blink, as mentioned earlier, is a factor, but he was only carrying on the Fed's history of fostering moral hazards. Yes.
How did this mess happen? Let's look at how Mac and Mae are perfect foil for analysis. Also, we can look at the creation of firms that screwed workers and feathered managers' bed (earlier posts have dealt with one instance).
Well, Mac and Mae were oriented toward public service in the beginning, in a sense. The notion was good in that it offered the opportunity of home ownership to a growing middle class.
At some point, and we'll not point fingers yet, those whose idea is to match their ego sizes with a larger wallet came to fore. Privatization reared its head and seduced the lot of us.
Well, not the blogger, since it is obvious to any who think and know that self is good, yet service is better. Naturally, the watered down version is the golden rule which is important to ethics which is related to a sister blog.
Anyway, a gaming scheme has become the current vogue with an enormous amount of money going to foster the daily bread aspect, with the markets, the analysts, the TV and other media, and the computational support.
Where is the humanity? Oh yes, teeming masses all after their own glory.
So, Mac and Mae (and dear old Sallie - gosh, using both profiteering and pirating to wrap students into unending debt) were twisted and screwed; managers started to reap large rewards (criminally, given the pay backs - oh yes, Grasso's take torques too since the market at the time of his leadership was supposedly a public service); the underlying ideas were lost.
Let's grieve and then clean house here. 'how' will be an area to look at. 'why' is apropos, too, as is a whole bunch of other topics.
But, keep in mind that there are those who step above self. In the sense of one current affair. those who risk life and limb far exceed in stature the PhD with the smirk, in particular, and that whole class.
God bless American and help it lead with a proper balance between public service and profiteering (this latter ought to be controlled just as we do gaming - as said before, a sand box is necessary).
03/23/2012 -- Ben is doing a series of four lectures on his, and the FED's, role.
08/17/2009 -- As promised, FEDaerated is here.
04/17/2009 -- Minsky and the facts of ephemeral value are a couple of topics on the list.
01/26/2009 -- Still asking for money from our, the taxpayer, pockets. Also, on the culprit list.
10/04/2008 -- Well, these are now folded into the arms of the government.
07/30/2008 -- The SEC sees gaming in stock for these; if this is obvious, then rules would be in order; don't you think?
07/17/2008 -- In the Denver area, of those within the coverage of the electric company (which, mind you, was at one time public service), there are 47,000 that are without arrears. The fat cats have gotten fatter; the mosts have thinned, quite a bit; are we to have people then suffer immensely due to improper management (from the highest level)?
07/16/2008 -- Leaders don't ask people to do things that they cannot or will not do (that's more in the realm of serfdom - what larger master is there than interminable debtor-ship).
How is public service learned? Well, it starts in the home. But, having the universal service time for youth would help, too. Remember, the WWII strategy of the draft cut across the board socio-economically. That this gaming mess may be the result of a 'computer game' generation and did not arise out of those who were GI-bill educated will be looked at in depth.
The original focus of the blog harped about consequences of misuse of mathematics and computers. That quasi-empirical issue still stands as important.