Greed
According to a columist on Financial Times, the total US spending on buying bad debt is something close to 1.4 trillion (1400 bn) which equals 10% of US GDP. And since a huge chunk of this mortgage is shared by the rest of the world (bank selling bonds to other banks) , the "total loss are now only 5% of US + EU GDP..."
Once again the Americans have let us down
Lately there has been lots of articles written about the financial crisis , not only on the Western media but also in the Taiwan Financial Weekly. In the latest edition is a special article titled "Confession of a Wall Street trader" which detailed a rather intereting story different from the one we have been hearing in GBE class. Instead of focusing on the credit crunch, it tells the stories of how "bright young mathmatical geniuses on Wall Street" jointly created these complex credit default swaps which they then sell to banks and subsequently sold onto general consumers who end up taking a big hit on their investment. Of course, the poor customers were unaware of what they were buying into, they had great confidence in the investment advisors, the bank reputations and bought these investments thinking they would be getting a 6% rate of return (terms saving is 3%). The bank investment advisor on the other hand, has their bosses on their ass to sell as much of these financial derivatives as possible, regardless of means. Those who had some business ethics in them, left the job because they knew what kind of dodgy business this was. Others, stayed and carried on business as usual, justifying their action somehow... human nature.
All salesperson at somepoint during their career face the dilemma of having to sell something even when they do not have the slightest confidence in them. When I worked in retail, I remember my bosses often pushed us to sell these financial packages to customers, "Ask us for easier finance options, 12 month finance, 24 month, 36 months" usually the longer it is the more you end up paying because what they don't tell you is the 19%- 24% interest ... Oh heck~ if I knew pushing for these packages will mean bigger pay check for me , should I do it? and how do I get that guilt over my conscious ? maybe the feelings of guilt will subside the more contract I make ... who knows
While I am writing this, an economic concept come to mind, "law of diminishing returns", I wonder if that apply to money or not.
19 Oct 2008 00:55
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7 comments by 1 or more people
[Skip to the latest comment]louis, i think that law of diminishing return can’t apply with the money
if can, how??
also wonder too -
19 Oct 2008, 10:15
hi ewwwwwwww :)
I think law of diminishing return probably don’t apply to money since money is not a “good” or “service”. Instead , it is how we exchange for goods and services. And since we can exchange for many different goods and services if we have a lot of $$ , I am guessing no-one will dislike being able to purchase any tangible goods without limit.
But what about goods and services? Does that have diminishing return as well? I think it does, there is a point where the ‘pleasure’ we receive from using goods and services become smaller and smaller and more we use. But it would take a lot of $$ to get to the stage where no tangible goods in this world would interest you.
When that happens, people would start looking for intangible goods like happiness which cannot be acquired by $$ along. This is why , I think, a lot of rich people like Bill Gates , get so much involved in philanthropy work (helping the poor) so he can be happy by helping others. Although not all cases of charity are truly altruistic, some people use that to evade tax for example :)
22 Oct 2008, 01:24
Apollo
Thanks Louis to share your opinion with me. ^^
I was standing on the side of China, so the opinion was coming from this degree.
Probably it is kind of self-interested as what Francisco said. Hence, I do have denfended my proposition.
I have posted it just below your comment, I don’t know if you have any notice for that.
Again, it is just a discussion, thanks very much!
22 Oct 2008, 21:30
Apollo
By the way, I really appreciate your way of doing things in the team as a leader or say as a supervisor maybe easier for you to accept.^^
A team needs such a person with such behaviour, that’s why I think our team is doing good.
Seriously ~
22 Oct 2008, 21:42
For how long did you work in retail for??
23 Oct 2008, 19:49
To Abhishsek
I worked in retail on and off for about 1 1/2 year part-time. Although it was neither professional or well paid, I really enjoyed my time there. I learnt a lot about interacting with people and grew confidence in speaking English in public.
25 Oct 2008, 02:24
fishing tackle
interesting
08 Jan 2009, 14:47
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