Newsletters & Blogs


2011-09-13
My thoughts on “All The Devils Are Here – The Hidden History of the Financial Crisis” by Bethany Mclean and Joe Nocera.


My thoughts on “All The Devils Are Here – The Hidden History of the Financial Crisis” by Bethany Mclean and Joe Nocera.

As I finish reading “All The Devils Are Here – The Hidden History of the Financial Crisis” by Bethany Mclean and Joe Nocera I am more and more convinced of the need for:

  • Robust Strategic Thinking;
  • Corporate Governance;
  • Risk Management; and
  • Accountability.

We are also starting to see the lawsuits and action that follows in the wake of this frightening part of the world’s financial history.

It is hard to think that following this 10 year (plus) period of self centred extravagance and an unthinking drive for mere profit that that whole world is teetering on the edge of complete collapse. And the “band-aid” approach that seems to be predominant is simply not going to see us through.

 We have all heard bandied around the term recession and double dip recession – I am concerned that a full blown depression is either on its way – or already here.

A few deeper causes are clear from this excellent blow by blow (and “player by player”) account of the creation during the late 1900’s and early 2000’s of a range of financial products that have literally caused the implosion of the world’s financial systems some of these are the following:

  • Lack of honest corporate communication and accountability;
  • Serious “short-termism” in terms of both reporting and (personal and corporate) incentivisation;
  • Unashamed personal greed (by both those selling these products and those buying them);
  • A massive lack of understanding related to the inter-relatedness of macro and micro economies (locally and internationally);
  • The fact that whatever you don’t fully understand can (and will) come back to haunt you;
  • Passing the buck can be fatal – the blame game is not sustainable;
  • Debt is (incredibly) dangerous on every level – personal, corporate and national – as we are currently seeing throughout the US and Europe; and
  • The answers to the problem will not be found by simply doing “more of the same”!

Without doubt this crisis is a “game changer” – the international landscape has forever changed. Now we simply have to wait and see whether and when those in power realise this, and so something about it or keep attempting solutions that simply “postpone the consequence” for another time and another place.

An excellent thought provoking book!

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