They Are Sociopaths
I am reading an post by Yves about trying rein in banker's pay and Yves suggests, "The evidence that US capital markets firms are firmly in the hands of hopeless sociopaths continues to mount."
I wish I had details about this video I saw years ago that basically showed the same parts of the brain in criminal sociopaths are underdeveloped in corporate executives.
I have to agree with Yves on this one:
The fact set is undeniable: the big firms in the industry engaged in a massive campaign of looting, of running enterprises in which the employees were consistently overpaid relative to the risks and true profits of the firms. The result was that they were overleveraged. The only reason the industry survived was due to massive public subsidies, from equity injections to special lending programs to super low rates to regulatory forebearance. By any right, the firms should have failed, and the bankruptcy course should have gone full bore after the pay earned in the bubble years as fraudulent conveyance.
This post is an exceptional read.