And The Winner Is?
By Invictus - March 6th, 2010, 7:30PM
Bernanke. Paulson. Geithner. Summers. Snow. Greenspan. And now, in the comments section of the posts about Buffett’s annual letter, even folksy old Warren gets taken to the woodshed by some BP readers as little more than a two-bit scoundrel. Which got me thinking: Is there anyone in the world of finance — anyone at all — about whom there is consensus goodwill? Anyone who’s above reproach? In the interest of fairness, let’s leave Barry out of this, as we all know he’d win hands-down. But in keeping with TBP spirit, I’ll ask:
What say ye?
P.S. Can we at least pretend that working in finance doesn’t preclude one from being respected and/or admired?
Tweet
Facebook
Reddit
Digg this!
March 6th, 2010 at 7:47 pm
I’ld vote for Jack Bogle, founder of Vanguard and originator of the retail index fund. While his message is often ignored by the financial establishment and press, I don’t think there is doubt of his integrity and advocacy for ordinary investors.
March 6th, 2010 at 7:48 pm
N. Taleb ?
March 6th, 2010 at 7:54 pm
Madoff. At least he turned himself in.
March 6th, 2010 at 7:57 pm
Invictus!
Some of BR’s Posters might see this and think it’s “Barry Himself” posting this.
Let’s just say…there are some Good Folks on Wall Street these days….but…so many folks who have their own interests that they serve that it’s a good thing for folks who have money “on their table” to be questioning them.
But, it’s kind of a “cruel post” …sounding like Barry…asking for retribution…while it’s not Barry’s Post.
Actually, it’s just a nasty post. I’ll leave it at that. It goes beyond “teasing the readership” to “taunting the readership.” I’d like to think better of this blog than that post. :-(
March 6th, 2010 at 8:06 pm
@Marcus: LOL. That is awesome. Although he had no choice. He knew the game was up and the plan was to sacrifice himself to save his family. Well done, Bernie. The game’s not up yet for the Feds, so these shenanigans will likely go on for years, if not decades (I can only hope). In the meantime, time to enjoy life. Spring and green shoots II are right around the corner. If you live where I live, that alone is enough put one in a good mood (for a while).
March 6th, 2010 at 8:07 pm
Jean Marie-Evaillard?
John Bogle?
David Rosenberg?
Meredith Whitney?
Elizabeth Warren?
Todd Harrison?
I respect those who don’t seem to have an agenda, speak out even when what they say is unpopular, and have the fortitude to withstand the criticism of the crowd over long periods of time…
I may not believe with Bogles indexing message, but I agree with his fee message and other things on his agenda…
March 6th, 2010 at 8:10 pm
TakBak04 – Does it sound like you are offended that Invictus would ask this question or just plain frustrated because no “Saints of Wall Street” come to mind?
I had a cancer scare fifteen years ago, sat down and wrote a low tech investment plan for my wife and referred her to two friends I felt are ethical. I specifically warned her that all the other FA’s in my office are suspect. Out of sixty FA’s two I could vouch for. Is that the same ratio for the big boppers on Wall Street: 2 in 60 or about 4%. If you died and left the family with say fifteen years wages how many people do you have complete faith in their ethics to look after your family?
March 6th, 2010 at 8:10 pm
Jeremy Grantham- as he constantly hits on the difficulties of balancing doing what is right with what preserves one’s job (career risk). His acknowledgement that it isn’t a perfect world and thus requires a bending of one’s investment beliefs is the pain all professionals feel in this business at some point in time…
March 6th, 2010 at 8:16 pm
I think it was Carl Icahn who said, “If you’re looking for a friend on Wall Street, buy a dog.”
Other than that, you can always trust the guy in the mirror.
That’s all I have to say about that.
March 6th, 2010 at 8:24 pm
Elizabeth Warren
Joseph Stiglitz
The further off “the street” you are, your chance of earning respect increases.
March 6th, 2010 at 8:25 pm
Invictus is asking for something that might not exist in these times. A HERO or TWO? He thinks it might be Buffet? Read this one… from Michael Lind’s new book..
How ‘Free Market’ Snookers Americans
by Don Monkerud | March 5, 2010 – 11:48am | permalink
Although some Americans worry about the growing power of the government, few understand the real power that controls their everyday lives.
Private monopolies determine the brand of breakfast cereal we eat, the type of car we drive, where we bank, the medical treatment we receive, the fashion of our clothes, and the kind of toothbrush we use, in addition to the beer we drink, the health insurance we buy, and what we feed our pets.
Under the guise of “the free market,” conglomerates merged and bought up smaller companies, until, today, they dominate their respective markets in every commodity offered for sale in the U.S.
» article continues…
http://www.smirkingchimp.com/
March 6th, 2010 at 8:35 pm
Brooksley Born
March 6th, 2010 at 8:45 pm
Meredith Whitney
Elizabeth Warren
Brooksley Born
Yves Smith
Eva Joly in Europe
Pretty much the women.
March 6th, 2010 at 8:56 pm
It’s kind of like asking if you’re one of the employees at a nuclear power plant when there’s a major leak. Is there anyone not contaminated?
In all my years of doing business in NYC and lots of other places, there were three that stood out as the most corrupt: NYC, DC and LA. “Trust me. The check’s in the mail. My pools bigger than yours. ”
Not just the market. Check out the insurance industry (hint:AIG).
I don’t think anyone gets out alive or uncontaminated.
What? You’re going to sit in the room and watch others load up while maintaining your sense of right?
Then what the hell are you doing there?????
My experience is everyone that plays, develops their own personal rationalization that makes them better, not as corrupt, not as dishonest. A cut above the rest. And that’s usually a good enough self-rationalization for justifying the rewards.
My experience is also those that do the best and prosper the most have an honest self-assessment, and accept the fact that they are “dirty rotten scoundrels”.
Oh there may still be a little “noblesse oblige”, but all that means is they can have someone else do the dirty work, while they attend mass.
So, no. I think the market is far more corrupt than it has ever been. At least during my lifetime. People don’ work there for a chance at an honest job. They work there for a chance at billions.
March 6th, 2010 at 9:08 pm
alfred e Says:
My experience is also those that do the best and prosper the most have an honest self-assessment, and accept the fact that they are “dirty rotten scoundrels”.
Oh there may still be a little “noblesse oblige”, but all that means is they can have someone else do the dirty work, while they attend mass.
So, no. I think the market is far more corrupt than it has ever been. At least during my lifetime. People don’ work there for a chance at an honest job. They work there for a chance at billions.
——–
Probably way older than you…but experience on the Corporate Med/Tech side for years would say your experience “multiplied” by my own many years…is the truth of the matter.
And…that TODAY…it’s considered: “Who Care’s a Flying Fuck about What’s “Moral Hazard” and what “ISN’T.”
“Moral Hazard?” That belongs to a time when folks were raised with ETHICS…but who gives a HOOT about “ETHICS” because it’s just “Antiquated Religious beliefs carried over from the 20th Century !” And…we all know there’s only One Religion that MainStream AMERICA CARES ABOUT! MONEY…MONEY…MONEY! Although there is still “FAUX NEWS” who pretends to speak these days for the “TRUE RELIGIOUS” ….the American Right whose Consciences are Above REPROACH on all issues for Females and Males.
March 6th, 2010 at 9:12 pm
bill seidman
March 6th, 2010 at 9:31 pm
I’ve always liked Jim Grant, and Janet Tavakoli, among others already mentioned, seems to be a good one, as well..
alfred e, well, states the case. there are a lot of *good People on Wall St., they just need to come Home and help re-build..
March 6th, 2010 at 9:32 pm
Well, these guys certainly aren’t candidates for the holy list!
===========
Transcript reveals anger of AIG employees toward politicians, public
By Brady Dennis
Washington Post Staff Writer
Thursday, March 4, 2010; A16
During the national furor that erupted last year after American International Group paid more than $165 million in bonuses, the voices of those vilified for receiving the payments remained silent, at least in public.
But behind closed doors, employees at AIG’s Financial Products division — the very unit whose trading had hastened the insurance giant’s collapse — were defiant, saying they were merely getting what they were due, recoiling at public accusations that they were behind their capitalizing on the company’s massive taxpayer bailout.
“I will stand behind every action I have taken in this company from Day One,” one employee said, according to a newly obtained transcript of a conference call the division’s head held last March with some of his staff.
…
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/03/AR2010030303764_pf.html
March 6th, 2010 at 9:42 pm
No one is above reproach. Because of this the U.S. system of capitalism is dieing. Corrupted and conflicted by big business and big government sleeping together.
March 6th, 2010 at 9:56 pm
David Einhorn
March 6th, 2010 at 9:58 pm
Volcker.
March 6th, 2010 at 10:06 pm
Absolutely Volcker. Surprised he wasn’t mentioned much earlier in the thread. We could do worse than have Volcker as Treasury Sec for the final years of Obama.
March 6th, 2010 at 10:15 pm
Whitney, Warren, Born, Markopolis, Volcker, Rosenberg, TD and Marla, KD, Tavakoli, Spitzer, Ratigan.
Put these guys in a room and re-boot to get it right..oh heck, let Orman in for the little people.
March 6th, 2010 at 10:16 pm
Volcker. Trivia Question: What well-known market pundit vehemently, loudly, publicly, adamantly, rabidly, arrogantly and repeatedly opposed **BOTH** the Volcker rule **AND** Reg FD (the regulation that prohibits selective disclosure of material information)………………………………Jim Cramer.
March 6th, 2010 at 10:33 pm
Volcker sold the country’s entire stock of silver at $.92, to “punish the speculators”. Sweet move, he sucks too.
March 6th, 2010 at 10:35 pm
Jimmy Rogers, George Soros, Marc Faber, Roubini, Taleb (notice how many foreigners)
SS
March 6th, 2010 at 10:43 pm
The every day citizens of Iceland. We could learn a thing or two from them.
http://www.zerohedge.com/article/93-icelanders-reject-icesave-bill-historic-referendum
March 6th, 2010 at 10:43 pm
Taking MA’s lead a little futher-
Jamie Dimon. He makes no excuses for being a giant blood sucking douchebag. He can’t be bothered to pretend otherwise.
The comment attributed to him in the ‘bankers before congress’ picture posted here captured it perfectly. “yeah, yeah, like I give a shit.”
March 6th, 2010 at 10:44 pm
ToNYC,
1/2 the reason the current state of affairs is, as extant, for the acceptance ‘by the little people’ of the likes of Orman..her #’s don’t add up, yet, she’s taken it upon herself herself to peddle more bad advice than a Dr. Phil/Charlie Merrill hybrid..
as Jaffe begins to lay out, here: “…Skewed numbers
In preaching her scary vision of the future, Orman reminds that the U.S. stock market was up a mere 1 percent from 1965 to 1982 and that such a long lull may happen again. She’s quick to say that the market can wipe you out — she once said on the Today Show that investors could lose more than 100 percent in the market, a statement that made no sense whatsoever — so she wants you to invest in the “known return” of your mortgage.
But when Orman tells someone save their pocket change and throw it into a Roth IRA — one of her favorite raise-yourself-by-your-bootstraps techniques — she tells you to expect “normal stock market returns of 11 or 12 percent over the next 30 or 40 years.”
That’s higher than historic norms and way above what experts like Warren Buffett, Jack Bogle and countless others expect for the next few decades.
Anyone who honestly believes the market will gain 12 percent on average for the long haul should want to expose a good part of their money — not just pocket change — to it.
Orman’s strategy of paying off the mortgage before diving into the market shortens the investment horizon, increasing the risk that someone will not be in the market long enough to see the gains she’s predicting.
I can’t understand it
When Orman says the “key to life” is “to be as happy in your sadness as you are in your happiness,” I think it’s time to invest in pharmaceutical companies making mind-altering prescription drugs.
Orman frequently breaks off lines like that. I’m sure they have something to do with money, even if they have nothing to do with reality.
I smell conflicts
Orman says she has never received money from LendingTree.com, which helped sponsor her bus tour across America to promote her last book. But if that helped her sell books, if the firm sponsors her show and if her Web site links to LendingTree’s and she talks there about her “friends at LendingTree,” it raises the question of whether there’s influence behind her pay-the-mortgage-first strategy.
She has stopped selling Suze’s Choice long-term care insurance on the QVC shopping network, but she has big commercial relationships that aren’t always disclosed and shouldn’t be ignored.
As immediate past president of the Society of American Business Editors and Writers, I can tell you the standard for most journalists is to avoid conflicts entirely, not to embrace the relationships and explain away the appearance of a problem…”
http://www.marketwatch.com/story/why-i-hate-suze-ormans-advice?pagenumber=2
March 6th, 2010 at 10:51 pm
Marc Faber
Albert Edwards
Charles Nenner
Jimmy Rogers
Eric King
Michael Panzner
Charles Ortel
Jeremy Grantham
Gary Shilling
David Goldman
Robert Prechter
March 6th, 2010 at 11:10 pm
Alan Reynolds
March 6th, 2010 at 11:10 pm
Sheila Bair
Paul Volker
Elizabeth Warren
March 6th, 2010 at 11:41 pm
I would have to say “no one”, as the notion of “consensus goodwill” means that any candidate for this would receive “consensus goodwill” from the “crooks and thieves”, as well as the rest of us (however few in number we are).
If a candidate receives “consensus goodwill” from those who most assuredly do not deserve it, one would have to assume it is because the “crooks and thieves” have no reason to worry about them, that they are either ineffectual or inept in using their leadership/prominence to oppose that which ought to be opposed.
If the “crooks and thieves” are few in number, then perhaps there could be someone who would qualify, but when the volume of those who need to be opposed rises to the levels that we see today, I don’t believe we can ignore their opinion, and so the possibility of “consensus goodwill” becomes unlikely. I doubt that anyone who has both the influence to change the game and the inclination to make it a “fair game” would be welcomed by the financial industry — certainly not by the leaders who set the direction of the industry and the rules by which the game is played.
That said, my own candidates would include Bill Black and Harry Markopolos. But bear in mind that ANYONE who has power and influence should be viewed with a certain degree of skepticism.
Trust, but verify.
March 6th, 2010 at 11:50 pm
Looking over the list of candidates for consensus goodwill, it seems that there are not enough there to fill the leadership roles in the Treasury, Federal Reserve, SEC, FDIC, Fannie Mae, Freddie Mac, CFTC, (and I’m certain that I’m missing a lot of regulatory/management agencies).
We appear to be doomed.
Goldman Sachs manages to populate the financial regulatory/management agencies — and more than just at the top. If we can’t identify enough Good People to replace everyone in high positions who have questionable loyalties, we are well and truly ****ed.
March 7th, 2010 at 12:01 am
Prieur du Plessis
Don Coxe
John Mauldin
Richard Russell
As a matter of fact many of those that write on Barry’s site are of the respectable caliber. That is why many of us are still reading here
March 7th, 2010 at 12:11 am
John Hussman. He of little faith & of anaconda choke hedging. So much so any alpha suffers. :-(
March 7th, 2010 at 12:25 am
Brooksley Born
William K. Black
David Rosenberg
Bill Bonner
Marc Faber
March 7th, 2010 at 12:31 am
Everyone here seems to have his/her favorites.
I don’t care.
Can any of you give me any convincing reason why I should?
rc
March 7th, 2010 at 1:29 am
@rc
I wouldn’t call them favorites. More like respected opinions. Here is why I like many of them. It comes straight from the proverbs:
15:22 Without consultation, plans are frustrated,
But with many counselors they succeed.
March 7th, 2010 at 1:44 am
My vote goes to David Rosenburg who manages to be right with being pretentious also he looks and sounds trustworthy to me. If I was going to partner him with someone who could get a handle on the more international macro side of things it might be Michael Pettis or Brad Setzer or both
March 7th, 2010 at 1:44 am
That should be withOUT being pretentious…
March 7th, 2010 at 4:10 am
Felix Salmon
March 7th, 2010 at 6:24 am
To Mark Hoffer:
I didn’t realize Orman pushed people into mortgages like that. What a terrible premise! I was writing a series on preditory lending practices – perhaps you will be interested in our take on the mortgage scam:
http://www.philstockworld.com/2010/02/13/interest-scams-and-how-to-avoid-them-mortgage-madness/
As to who is above reproach? I have to give Bill Gates points for his charity work and do we really think Paul Volker is trying to gain something for himself or is he really doing what he can to sort out this mess?
March 7th, 2010 at 6:40 am
Ok I’ll try to explain this from what business people REALLY hate, the truth.
Let’s say you’re a kid from the city and you grew up thinking America is the land of opportunity and that if you work hard enough and stay in school, there will eventually be better opportunities for you.
Then you find out as you continue to work, that the world is truly comprised of a group of people all purusing their own self interest, which is fine we all understand capitalism.
Then you find out as you continue to work , your educators are merely engaged in another ponzi scheme to enrich themselves at the expense of the federal government.
Then you find out the world is really comprised of a group of people ( including your parents) who ALL feel they’ve been shafted in some way.
Then you find out there’s a sliding scale of morality and depending on where the ball is that day, we decide whether black is blue or red is white.
Then you find out the people who like to call themselves the wealthiest people in the world are really just a group without any future plans drifting aimlessly looking for a health care shelter.
Then you find out the economic engine of the country depends more upon the pursuit of silly consumerism so much more than it depends on sound business principles.
Then you pay back your loans 100% . Only to be insulted by a bank who doesn’t even employ U.S. citizens, and would just as quickly transfer you to the collections side of the equation as actually believe that when they lend you MONEY , they become in some senses your “business” partner.
An entire society who wants something for nothing. And when they get NOTHING , they have to believe it has Something to do with the people who have everything.
Wow what a stretch. You’re lucky it’s this contained and frankly this mild.
March 7th, 2010 at 6:49 am
Oh and nobody cares about their reputation. They care that the check doesn’t bounce.
You play the cards you are dealt.
March 7th, 2010 at 6:52 am
Mama always said life if like a box of chocolates.
When life gives you lemons, make lemonade.
A pig in the poke is better than a bird in hand or three stones in the bush .
And whatever other silly witicism you want to toss out there.
And the GREATEST part of everything is this, It’s all going to be just fine. Because we’re much stronger than we give ourselves credit for. This is nothing. Bring it on.
March 7th, 2010 at 7:11 am
@budhak0n
My favorite quote is from one of my greatest enemies.
In the long run, we’re all dead
When life gives you lemons, make lemonade.
Lemons make for great weapons to throw at the guy on stage making more promises
March 7th, 2010 at 7:19 am
re the last sentence of budhakon’s comment: I want some of whatever he’s smoking!
March 7th, 2010 at 7:25 am
Hey the founding fathers have taught you this if you’r e a true student of history.
The Man who refuses to lose, refuses to pack up and go home, refuses to accept that which is not what he or she have envisioned for themselves, can never be defeated.
But many will try.
March 7th, 2010 at 7:28 am
Think of the economic cycle as a very COLD COLD winter. Spring blooms eternal.
Doesn’t mean all of your problems are over, just means that your excuse for not getting what you want out of life has gone away.
March 7th, 2010 at 7:56 am
global warning: no one fits the title.
why ?
answer: 45 years of deficit spending & inflation has ruined everyone’s reputation.
March 7th, 2010 at 8:03 am
” Is there anyone in the world of finance — anyone at all — about whom there is consensus goodwill? Anyone who’s above reproach?”
—————————————————————————————————————————
Intriguing questions. Had to think about this a bit, sleep on it overnight, and in doing so came to a new question. In any industry, business, government or religious organization is there any leader who is “above reproach”?
Is the financial industry truly any different than any other? Each has its “good guys” who enjoy the broadest approval. That’s probably as close as you get to consensus goodwill. But even they will be debatable. However, I don’t believe there is a leader in any business, industry, government or religious organization that is truly “above reproach”, and the world of finance is really no different from the others. It is, however, more visible recently than others, and because of the broad impact the focus of much current attention and widespread contempt.
March 7th, 2010 at 8:05 am
Finance is atoo broad a term for what some of these ‘specialists’ specialize in.
If a finance guy like Dick Fuld is hounding his employees to bring in more mortgages that were extended to no doc loan recipients and gets a bonus based on how many of the loans are securitized and sold to his unsuspecting clients, THAT finance guy should thrown over a cliff into the mouths of hungry dinosaurs. If Bernie Madoff runs a ponzi scheme to take money from people he doesn’t deserve more than contempt and whole lot worse. Lord Blankfein converting his company to a bank holding company to ‘gimmer shelter’ and then turns right around and uses that shelter to pay multibillions in bonuses he deserves to be thrown off the top of 85 Broad.
The finance guy who originates sensible loans with due diligence and exercises prudence in lending money amidst the shenanigans going on around him, yeah, he could be considered for canonization.
Certainly there are many unknowns who practice their professions in finance in honorable ways and likely they must be in the majority since 80% of mortgages and loans are paid on time and are currently performing.
As usual it’s that 10% who piss in the pool and ruin it for everyone.
March 7th, 2010 at 8:47 am
I second George Soros – surprised he’s only been mentioned once.
March 7th, 2010 at 9:03 am
A few others to add to the names mentioned earlier:
Mish Shedlock
Kevin Depew and the rest of the Minyanville crew
Michael Panzner
Bil Fleckenstein
Essentially anyone who’s willing to look at the Big Picture and tell you what they see and believe is happening, rather than what they think you want to hear or have a book to push, which basically rules out 99.9% of the CNBC permabulls and guests and the politicians in this country.
How anybody can look at the current Macro conditions in this country and the governments manipulated data and have anything positive to say about growth, housing or employment and live with themselves boggles my mind?
I am reminded of the old Simpsons clip where a reviewer asks McBain, the Schwarzeneger-esque action hero, how he sleeps at night making such lousy movies, and McBain answers “I sleep on a big pile of money with lot’s of beautiful women”. ;)
March 7th, 2010 at 9:10 am
Certainly none of those who get the face time.. namely Kudlow, Cramer, Varney, Cavuto etc.
I think that Consuelo Mack has the most cred of any mainstream person with regular face time.
March 7th, 2010 at 9:11 am
I forgot about a few besides Volcker.
Tay Sunday
Chad Vader
Codex
Rick Astley
March 7th, 2010 at 9:13 am
George Baily. His building and loan helped hundreds….Oh, yeah, he is a myth.
March 7th, 2010 at 9:36 am
There’s no such thing as a human being who is above reproach. Or else we are all above reproach. I’m not exactly sure which it is.
March 7th, 2010 at 9:44 am
ometimes a picture is worth a thousand words:
http://mythos.biz/Images/ringlogo_unicorn.jpg
Vogel is the Ralph Nader of politics and both will only get successors if new laws are enacted that protect smaller money.
March 7th, 2010 at 10:19 am
Oil tycoon, Jed Clampett
…learned me all I needed to know about the likes of Milburn Drysdale and them other city boy banker types.
“Us old foxes is trap-shy… especially when the bait comes looking for us!”
(sorry… forced to look to the fictional world of finance)
March 7th, 2010 at 11:05 am
Cassandra of Tokyo: http://nihoncassandra.blogspot.com/
Whoever she is…?
March 7th, 2010 at 11:45 am
Philstockworld,
you make many fine points, in that piece, including this:
“…Why don’t they teach this in school? Because the last thing “THEY” (the top 1% specifically) want is to have a nation full of 50 year-old millionaires who put $100 a month in the bank instead of wasting it on spinning hubcaps or 3 rooms for each person in a house (which has to be heated, furnished, cleaned, maintained and taxed). Those people wouldn’t have to work for whatever wages they were offered or be forced to spend their entire lives slaving away in debt. $100 a month now may not change your life but it will GUARANTEE your grandchild retires a Multi-Millionaire (at 8.5%).
“THEY” do NOT want this to happen. With that sort of head start, your children or your children’s children could become entrepreneurs and start their own businesses and compete with the grandchildren of the top 1% on a more even playing field. The whole system is designed to make sure the children of the bottom 90% never learn how to manage their money except enough to pay their bills to the top 10% and, of course, once those debts are in place, the full force of the law is there to make sure those bills do get paid, even though outrageous PayDay Loan fees.
Look what happened last year – There was a systemic failure in which the banks were in danger of not getting paid and millions of Americans were in danger of losing their jobs and their homes. The government leapt to the aid of the banks, making the survivors whole (in fact, many had their best year ever) while millions of people still lost their homes and their jobs and, even better, the government did that by putting our grandchildren $113,243 into debt, EACH!(and, counting-ed.)…”
http://www.philstockworld.com/2010/02/13/interest-scams-and-how-to-avoid-them-mortgage-madness/
as I mentioned, in nearby thread, ~People better learn how to ‘swing by the vine’, or they’ll ‘hang by the rope.’
as an old saying goes: “Self-education is Preservation.”
March 7th, 2010 at 11:52 am
“P.S. Can we at least pretend that working in finance doesn’t preclude one from being respected and/or admired?”
No.
The finance sector in the US doesn’t invent new things, or develop them. Financial types won’t cure cancer (when it is cured), nor will they solve the energy issues this nation faces.
The financial sector is nothing more than a bunch of professional grifters who seek to profit off the honest labor and sweat of the of the truly productive in our society. Financial wizards have nothing of actual accomplishment to their name: they grow no crops, produce no livestock, build nothing of permanence like a bridge, dam, building, train or ship, they create no useful or durable inventions, medicines or science, they seek quick and outsized profits from providing capital (with interest, terms and conditions) to the productive sectors of the economy, while promising outsized gains to investors (most of whom would be better off with simple asset allocation strategies that take only 30 minutes to explain) and collecting/creating fees and profits for themselves on both sides of the transaction, all the while muddying the waters to both borrowers and investors with gratuitous complexity designed to hide the true nature of the borrower/investor relationship from all but the grifters in the middle.
The most complimentary thing that can be said about those who work in finance is that they’re parasites. Some parasites enjoy a symbiotic relationship with their hosts and are beneficial overall. But Wall Street has forgotten the #1 rule of the successful parasite: do not kill the host.
The most telling factoid that told me we were heading for a long term re-alignment of the US economy with major pain was that at the peak, over 22% of all earnings in the SP500 were attributed to finance or financial companies.
Prior to the 1980′s, that number was something like 8% or less. That’s about where a parasite’s profit level belongs – down in the single digits.
March 7th, 2010 at 12:25 pm
Hey I am not against anybody getting paid what they’re worth but the past twenty years on Wall Street has essentially been spent propagating two scams: 1) the dot-com bubble and 2) the housing bubble. The dot-com bubble was essentially a bunch of cr*p companies with no business plan being pumped by conflicted stock analysts in order to get IPO fees for their I-bank brethren. The housing bubble was essentially the debt version of the dot-com bubble – securitization of crap loans that in any other era would never have been made being given a stamp of approval by hopelessly conflicted rating agencies in order for them to get fees from and for their I-bank clientele.
In both instances the bigger the lie meant the bigger the bonus. I say lie because when people speak of “taking on too much risk” what they are really speaking of is the fact somebody in some I-bank was either a) lying their @ss off about the value of assets or b) knowingly looking the other way.
The sad thing is the government was more or less in on both scams. Sure they put a few heads on stakes after the cow left the barn, but they never complained when the bubbles are expanding.
March 7th, 2010 at 12:38 pm
Surprised no one has yet mentioned Casey Serin:
http://en.wikipedia.org/wiki/Casey_Serin
Oh, wait….I misread the thread question.
March 7th, 2010 at 1:01 pm
Fed: Paul Volcker
Consumer: Elizabeth Warren
Investors: Peter Schiff, Ron Paul
Philanthropy: Bill Gates, Warren Buffett
March 7th, 2010 at 1:11 pm
I’m surprised the plain, common investor hasn’t been mentioned. This is the guy who, because he has to swim out there with all these financial sharks, should really be considered. He is the guy who is worried that he will have enough to live during retirement and is just trying to use his limited knowledge to make a little more than what he has. He is betting that his knowledge will be enough to make that extra buck. Oh, I forgot, we are trying to pick the honest experts who have all the knowledge. Sorry!
March 7th, 2010 at 3:12 pm
Notwithstanding the aptness of dsawy’s parasite analogy, I believe that there remain many honorable people in finance. Even if innumerable so-called professionals made a mockery of integrity and decency in recent years, productive allocation of capital and preservation of accumulated wealth are still very high callings. If those who aspire to financial excellence are looking for a role model, I think Jesus Christ is more than suitable:
Laziness is bad and trading is good, Matthew 25:14-30
An entitlement mentality is wrong, Matthew 20:1-16
Spiritual riches trump material wealth, Luke 12:13-21
A charitable mindset is a must, Matthew 19:21-30 and Luke 21:1-4
Arrogance is anathema, Luke 18:9-14
March 7th, 2010 at 7:54 pm
I nominate CNBC SUCKS for his perfect blend of finance, politics and breasts.
March 7th, 2010 at 8:18 pm
William J. O’Neil – IBD
March 7th, 2010 at 10:44 pm
Jack Bogle of Vanguard, a man of integrity who has innovated greatly in favor of the small investor. I especially admire the man as a champion of a lost cause–the cause of the ordinary shareholder, whose interests have long been eclipsed by the “managerial revolution” described three generations ago by Berle and Means.
Read account after account of the recent Wall St. bust, and one pattern is constant: Top management, abetted by an overpaid, supine board of directors, overreaches for all the usual motives, to the detriment of the shareholders as well as the rest of the citizenry.
Bogle can’t turn the clock back but his heart is in the right place. It seems that the only good causes in these times are lost causes.
March 7th, 2010 at 11:02 pm
Mauldin – hands down
March 8th, 2010 at 12:15 am
Some very interesting comments here. I too look favorably on Paul Volker. However, I don’t think he has the stomach for bricking up the doors and windows at 85 Broad and its regional offices to keep all those bright sociopaths contained.
I also wonder why having 500 million dollars is so damn important. People who feel that net worth is the measure of their importance are seriously delusional.
Not to suggest a monk’s life is the way to go but there is a limit to what one needs to live comfortably and safely (although obviously that amount is going to have to go higher in the future, thanks to the shenanigans of the current leadership).
March 8th, 2010 at 1:03 am
Sallie Krawcheck
March 8th, 2010 at 1:26 am
Barry, I’m trying to pretend, but have failed. I’ll stop there.
March 8th, 2010 at 1:57 am
Nope, we sure can’t. Unless we ourselves work in finance, in which case, we *know* we’re respected and admirable, and don’t need to pretend a thing.
March 8th, 2010 at 9:17 am
Faber – Complete Respect.
March 8th, 2010 at 3:54 pm
Elizabeth Warren!
What a babe.