Good Ole Boy
Everything seems to come full circle around every ten years. The above link talks about exactly that. Case studies keeps repeating the same mistakes. Politics and Business works together in a "Good Ole Boy System" of greed not honest business.
History 1980's Savings and Loans local Politicians and Businesses get loans based on phony book values no income statements etc... sound familiar only qualification was to be a connected "Good Ole Boy". Of course things got out of hand the local banks went under. In comes the Feds saying that regional and national banks will take over to control the corrupt local systems with professional MBA's. Through creative accounting up to 1997 60% of the savings and loans debt was still tied up in court. If the debt ever got paid no one knows no news about it or any further case studies written the debt just disappeared.
1998 in comes legalized corruption protected and created by national politicians and national banks. The MBA's found that they could repackage debt, that under the previous system stayed at the local level ,and sold it to investors ( American's pension funds etc...). Only problem the MBA's found that you still needed the local politicians and businesses to get phoney valuations. In my small town "Good Ole Boys" were still able to get millions in loans based on over valuation of what in reality were crack houses valued as prime real estate. I am sure that somehow this new round of unpaid debt will somehow disappear again when the MBA's have come up with a new line of financial products to keep the system going.
Now there is talk about going back to the good ole days of local banks issueing mortgages the cycle never ends. Goes to show you you can not seperate Politics from Business in a developed country you need the politicians to write the highly valued rule of law to keep the corruption going and rationalized as the rule of law the western version of eastern face.
IMO the only difference in a undeveloped country and a developed country is in a developed country they have enough sense to make the corruption legal first in very sophisticated laws that make it very difficult to detect.
Now that the Feds are involved I can not wait to see what new financial derivatives the MBA's come up with for the next ten year cycle. Maybe they will make "relaxed lending rules" illegal would that not be a shocker. :shock: :shock: :shock
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