Because he could.
The problem with our financial system is it is a lot like our political system. Many of the people in our government are self serving as is the CEO's and top level executives of Wall Street. Many of the people who are making the important decisions are also accountable to their investors of their own companies. With Madoff, the SEC was warned numerous times, but they did nothing. Why do you think? I am thinking there is a lot more to the story then they are letting out. How many SEC officials invested money with Madoff or other fraudulent investors? I bet you quite a few. If you have ever read the book "Freakonomics" then you will understand the next analogy. You see in the book they compared the "Klu Klux Klan" to the realtor's association. The reason why they did this was because they said the realtors association almost was this secret society harboring all of this information on real estate(Multiple Listing Service). I am now contemplating making that same analogy of the financial system.
- How many people actually can comprehend receiving a million dollar bonus for just showing up for work? (When explained they always seem to argue we are contractually obligated and if we did not then all of the best people would leave) Oh really aren't these so called "best" people the ones that did not produce and put us into this mess in the first place?
- How many people actually understand why banks are losing all of this money? (What I do not get is that I loan out $300,000, and people are paying me $2000 a month for this money then they stop paying and someone wants to short sale by paying me $200,000. Isn't $200,000 better then nothing, and isn't it better then $2000 a month? Yes I have lost $100,000 in net worth, but now I can turn that $100,000 loss into a $100,000 gain if I invest smartly.)
- How many people really understand how the financial process works? (I certainly do not. I consider myself a pretty intelligent person, and because unless you have worked in that arena then you can't possibly know what actually goes on. There should be more transparency.)
- How many people really believe the banks want to help us? ( they do not want to help us because they know that the government is going to do everything they can to keep them from failing. Doesn't a cycle like this happen every 20 years or so? It does because the government always bails the banks out in one fashion or another. It is like the spoiled kid that always gets everything he or she wants. He or she always comes back for more because he knows that mommy or daddy will always bail them out. Well look what has happened the banks are the spoiled brats always coming back for more.
- How many bank executives actually know what it is like to struggle? (I am not talking about losing their 7 figure jobs, and their 7 figure homes, but I am talking about trying to figure out how you are going to put food on the table for your kids. They do not know sacrifice. They do not know when coming home at night hoping that an eviction notice is not on the door. They do not know sacrifice because they have not lived in "normal" society's shoes)
We have some serious problems, and I am a believer in we have to build from the bottom up, and it stinks from the top bottom. We need to let many of these banks fail, and stop bailing them out. At some point we need to show the spoiled brat some tough love. It works in life why won't it work in business?
David Serle
Vice President/Managing Broker
RE/MAX Services
561-912-3500 Office
561-912-3502 Direct
561-756-3104 Mobile
