Thursday, September 18, 2008

Masters of the Universe

Roger Cohen in today's NYT:

"The leverage party’s over for the masters of the universe. Shed a tear. When you trade pieces of paper for other pieces of paper instead of trading them for real things, one day someone wakes up and realizes the paper’s worth nothing. And Lehman Brothers, after 158 years, has gone poof in the night."

"For years, accountants, rating agencies and Wall Street executives decided to shoot craps and collect fees. Regulators, taking their cue from a distracted President Bush, took a nap. The two M’s — Money and Me — became the lodestones of the zeitgeist, and damn those distant wars."

"The biggest single-day market drop since 9/11 reminded me that when trading reopened on Sept. 17, 2001, and the Dow plunged 684.81 points, some executives backdated their options to reprice them at this postattack low to increase their potential gains."

"So that’s what “financial killing” really means. No better illustration exists of a culture where private gain has eclipsed the public good, public service, even public decency, and where the cult of the individual has caused the commonwealth to wither."

"That’s the culture we’ve lived with. It’s over now. Some new American beginning is needed."

No comments:

Post a Comment