A major piece of the GFC puzzle is Wall Street’s obsession with the Short Term … meaning quarterly metrics, earnings, bonuses, job hopping, etc. It’s a cultural aversion to the Long Term which, in the minds of many, means Planning. Oh my god, Planning? Isn’t that a socialist/communist thing?
Anyway, the structure of bonuses is obviously at the root of all evils here and the SEC and Ms. Story are missing it in the article linked below. The former by design and the latter by ignorance. Yves Smith, of Naked Capitalism and author of ECONNED, might be a bit too hard on Ms. Story but Yves OWNS this story and she's 100% right in wanting to expose the truth. The fact that too few of us actually care about what really happened explains much of why we are in such deep shit …
NYT Muffs Merrill/Magnetar Piece (And Why is No One Investigating the Related Bonus Fraud?)
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