A Revista Cadernos de Cultura e Ciência é de caráter nacional e multidisciplinar, cadastrada com o ISSN 1980-5861.

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Greed and the Amoral View of Business in the United States

por Lyle McCafferty (2018-11-11)

Wall Street bank executives are under fire for his or her ridiculous compensation packages before annual bonuses that'll be announced and awarded next month. So far, pundits have offered three arguments for not limiting Wall Street bonus compensation. First, they are saying that "government shouldn't hinder private enterprise," the premise I normally wholeheartedly endorse. However, since Great Depression, the world banking industry has received a solid otherwise incestuous regulatory relationship with government. The failure of Bear Stearns and Lehman Brothers along with the subsequent actions of government to stop the failure of probably all the rest from the world's major banks and finance institutions would be the very reason they survive to allow for their leaders to haggle today about how high their paychecks needs to be. Moreover, the main reason financial institutions are recovering so quickly is primarily for the reason that government is lending them money virtually interest free they can reinvest at higher returns. Not only don't citizens enjoy such investment favor, but between TARP and low bank rates, we as taxpayers and bank depositors are paying to fix the banking system.

banking systemBankers nevertheless state that Global economic collapse is highly unlikely. A former chairman of the Chase Manhattan Bank claimed inside a recent interview that this banking system "is very sound." True, "banks perform lot of business together, so there is tremendous interdependence." But he felt it "most unlikely" that such a Global economic collapse would pull down the world banking system. Since the success of the banking system rests on public confidence, however, it's understandable that banking leaders speak so optimistically.

However a "system" is greater than merely some type of computer. A "system" is often a grouping or combination of things or parts forming a complicated or unitary whole. An easily understood example could be the postal system including such things as letters, stamps, parcels, letter boxes, post offices, sorting offices, computers, clerks, mailmen, delivery vans, airlines; just to mention several of its components. It is how all this is organised making it to be effective that means it is worth the title "postal system". So, whenever we discuss about it something, we talk about something bigger and more complex than the computerized portion of that system.

There is a rich reputation what sort of banking bailout system has spread throughout the entire world and it has been leading us to larger central banks for example the Federal Reserve Bank. Each failed central bank must be bailed out when it fails as a result of over utilization of debt to handle the currency. It is going to happen to the Federal Reserve Bank if something isn't completed to correct our current course. When our central bank fails, individuals do better to protect themselves by owning hard assets which go up in price with inflation, so the buying power of this wealth could be preserved. This is important to keep in mind once we watch how a "Lending Crisis of 2008" unfolds in the eventual cyclical recovery. Will our currency survive for another cycle? If so, we might simply be another step from a brand new currency to begin the cycle of inflation again. Will the Federal Reserve Bank survive? Will it expand, or should it be absorbed by another central bank?

That will lessen the amount of cash that banks can use to re-invest inside their sometimes dodgy financial instruments in short term gain and bonus taking. Can you have the bankers starting out grow nervous? Can you think of the wailing and gnashing of teeth if it bill called the 'Financial Services (Regulation of Deposit and Lending) Bill' got into law?

ISSN: 1980-5861