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Economics

Questions on the Present ‘Crisis’

I know next to nothing about finance and economics, but since stock prices which had previously been ridiculously inflated are now falling to their actual value: isn’t that a good thing? Shouldn’t we be glad the correction is finally happening and shouldn’t we have wished it had come sooner? Isn’t this something that should provoke a sigh of relief? Doesn’t all this panic on Wall Street make the financiers look like a bunch of little girls?

Of course in the old days, you had men in charge. J.P. Morgan was the head of J.P. Morgan, and by gum that meant something. There was someone to be accountable to. Nowadays, no one person owns anything, which is to say, everything is owned by everyone. As the American Loyalist of old oft said: “I would rather be ruled by one tyrant a thousand miles away then by a thousand tyrants not one mile away.” When you had a giant like Morgan around, he could invite everyone round and sort things out. Now, CEOs come and go and are accountable, not to one man, but to “shareholders”, who are apparently legion, and not terribly keen on holding their henchmen to account during the times when the profits are flowing in. The same goes for finance ministers and the central bankers.

Out with them all, I say, and bring back Mr. Morgan!

Mr. Morgan did not appreciate having his photograph taken.

October 15, 2008 9:17 pm | Link | 8 Comments »

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