How Greed Defines America: AIG is Just One Example

By Bill Glynn

"Greed is all right, by the way I think greed is healthy. You can be greedy and still feel good about yourself." --Ivan Boesky

It is greed that makes people want to do things, since they will be rewarded for their efforts. America is built on this principal that creates enormous wealth, opportunity and innovation but is also one of the primary causes of the denigration of our economy and society. The lust for power and wealth are two of the primary motivators in our society. Theft, fraud, abuse of power, reckless behavior, risk taking, on and on - even pride, power and politics are driven by greed. Advancement in our society, not just the financial sector, is driven by personal desires to obtain a higher social status and the acquisition of wealth, power and property. This beast is within us all and very few tame it. And the genie has gotten out of the bottle.

In the case of AIG and other large financial institutions that have failed, are failing or have caused catastrophic economic conditions, the GREED is excessive and appalling at best. Yes, there are contractual obligations; but there are moral obligations, too. The fact is there is little correlation between morality and greed.

Sure, in good times derivatives traders, investment bankers and heads of corporations made off with billions in bonuses. Yes, it is BILLIONs, not just hundreds of millions, when you add it all up. Executives and employees that reap enormous rewards for running their businesses and our money right into the ground are the very ones profiting – certainly not us! This is the way the financial industry and business world at large works. People get paid but do not give back when their actions cause havoc and massive economic loss. This is never truer than in the case of the derivatives group at AIG. The contractual obligations of the business are obvious and the government is caught in a mess of good money after bad. So how do we navigate this issue that has Americans screaming across the country? [more...]