Greenspan on Execs --
Greenspan coins another term, saying "an infectious greed seemed to grip much of our business community" as huge stock option grants "overcame the good judgment of too many corporate managers."
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Subtlety is not one of my strengths
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Wednesday, February 08 2012
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Greenspan on Execs --
Greenspan coins another term, saying "an infectious greed seemed to grip much of our business community" as huge stock option grants "overcame the good judgment of too many corporate managers."
Full Story Here
Shakespeare he ain\'t
Authored by: dbsmall on
Wednesday, July 17 2002
I really like the term "irrational exuberance." It concisely describes the root cause of the bubble.
Alas, "infectious greed" does not succeed as well. As the article points out, infectious greed has been with us for centuries. In fact, the motivation of self-interest drives a capitalist society (even if you believe the constraints modelled by Nash.) The new problem is one of "obscured observation" (I've always been a fan of alliteration.) We've permitted too much leeway in financial reporting, and made it too easy to hide unethical dealings. This was compounded by people's utter misunderstanding of stock options, and their misuse as an incentive for ordinary workers.
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