Wednesday, September 23, 2020

Quote of the Day (Sarah Gordon, on the ‘Overweening Power’ Behind the Last Recession)

“The failures which led to the [2008 financial] crisis were more of behaviour and character than of financial instruments or processes. The tales of casual greed and of ordinary people misled and deceived by irresponsible bankers are familiar. But there was one element to the crisis that I have seen repeated in many different forms: overweening power. In the business world this breeds all sorts of crises, from the personal to the systemic.”— Impact Investing Institute Chief Executive—and former business journalist—Sarah Gordon, “Making Sense of the City,” Financial Times, March 9-10, 2019

As it was a dozen years ago, as outlined by Ms. Gordon, so it is now—except that the “overweening power” was exercised not by a group of “irresponsible bankers” but by one individual, placed far higher.

In August 2019, Alex Shephard of The New Republic accurately predicted what might happen if a recession arrived during the last year of the President’s first term (though he missed the particular circumstance—COVID-19): “Not a disciplined, unified response to a crisis from this White House; instead, an unhinged president issuing feeble edicts from his bed, many of which could cause a sputtering economy to spiral.”

No comments: