While I have a really good case of the ass about the state of the
economy, let me pose a question: What kind of business schools do we have in this country that when I think of a stock broker or lender I think of a used car salesman with a really nice suit, an ethically impaired individual whose ethical compass was never properly calibrated when they got their MBA? U.S.
Just so I don't appear to be a total naif, I note that economic downturns are cyclical and therefore inevitable. But the ongoing unraveling of the American economy – and the reverberation in world markets -- as the
hurtles into recession is substantially the result of greed by the players at major financial institutions that borders on the criminal. U.S.
The trigger for the unraveling is, of course, the inevitable collapse of the subprime mortgage market, which preyed on – and reaped obscene profits from -- the people with the lousiest credit who could least afford to own a home.
The subprime greed merchants are now paying the piper and further fueling the meltdown. This means that they may miss a payment on their Porsche Turbo, but it leaves your neighbor wondering how the hell he can keep food on the table, his son in college and granny in that managed-care facility.
Did these business school grads forget what they were taught? Were they taught that it’s every Gordon Gekko for himself? Or are business schools blameless?
This is meant to be a discussion stimulator. With the focus on business schools.
Have at it.
Tuesday, January 22, 2008
What's Wrong With Our Business Schools?
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Business schools teach the "Now" model for calculating economic worth.
If I can ratchet up my company's profits for this year end, the company's stock price will soar and my bonus will be huuuge. That is the Now Model.
General Motors exemplifies the American B' School thinking.
Knowing full well that better built vehicles with better mileage were necessary to maintain their leading market share of auto sales, the GM (greedy mothers) leaders opted for short term profit eventually tanking the company.--
Off topic....Wall Street paid out $60 billion in bonuses for 2006 and 2007. Now Merril Lynch, Citicorp etc are selling large equity positions, thus diluting their present shareholders, to replace billions in lost capital that has been paid out in bonuses. Check that out for a business model. Sell common shares to pay management for years in which they incur losses.
Again, who gives a crap about the long term results of their company when today's salary and bonuses are computed only on how much product has been moved out the past quarter. This is the "Now" Model.
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