sholihin84
Jan 23, 2016
Writing Feedback / Greed and Unsafe of Global Economic [3]
Michael Douglas stated that greed is good. Greed is right. Greed works. Greed will save the U.S.A. That slogan was said again by Gordon Gekko in a movie, Wall Street. It became a belief adopted by people in the world. In particular case, greed is main energy actuating human activities like bussiness ardor.
For economists, who believe that greed is important, that greed is argued have ability to motivate economic growth. Although over the last three hundred years, our cultural spokesman have expressed increased confidence in the pursuit of economic self interest even when it might lapse into greed. That trend make the greed accepted as good character in pursuit of happiness. But it is not durable as morality of economy. Economic crisis in various countries have indicated that greed is bad for economy imunity.
Economic crises which happen in the world often were caused by human greed. A good book telling on greed history is Davis E.Y. Sarna's book, History of Greed: Financial Froud from Tulip Mania to Bernie Madoff. From that book known that greed is worst character . In this context Sarna stated that greed is an excessive desire to acquire or process more than what one needs or deserves, especially with respect to material wealth. In fact, greed leads us to froud and dihonesty.
Those characters essentially are nasty for human life, and also for economic activities. In moderation if the greed in christian theology is one of the seven mortan sins, unpardonable sins entailing a total loss of grace. In morality of Islam, greed is one of bad habbit which must be avoided by Muslim.
There are some evidences showing that greed lead a countries to economic crises. From classical Athens, greed or pleonexia had emerged as an instrument to distribute the power and resources. On other hand, greed suggested an economic chaos. In modern era, how greed make economy crisis can be understood from recent crises which happen in countries. The last history telling about thesis is the meltdown of 2008.
David E.Y. Sarna doubtlessly blamed greed, hubris, and lack of supervision for the crash of 2008. Even David E.Y. Sarna named that crash as a neer miss for plunging the world into deep depression. It disrupted the lives of many millions of people, and caused enormous pain and suffering to many.
In specific analysis-historical approach-E.Y. Sarna detected that cataclysmic events of 2008, when markets seized up, the government stepped in with a bailout of $85 trillion and ended up owning huge chunks of private sector, and the stock markets collapsed, did not come about overnight, event though their effects became apparent in just a short period of time.
Other case which must be understood is Allied Irish Bank (AIB). The dramatic story on AIB is that a trader at its Allfirst Baltimore-based subsidiary had lost $691 million in unauthorised trading. The factor why unauthorised trading happened at AIB is the poor risk assessment and management control; a lack of management supervision; an inefective internal audit process; and short-signted desire to reduce overheads without regard to the potential long-term consequencess.
The causal factor why the crash of 2008 in USA is desire to take over advantage from depositor. In fact, the creditors-bank in U.S.A-give loans without learning the depositor's ability to re-pay their loans. As a consequence that indiscretion suggest economic crash in USA. Its domino effects also were falling on the other countries at Europe like Spain, and Greece.
Right now, the effect-daunted of greed still threaten the global economic. It implicates the depositor's prefence on bank. The bank clients realised that financial capitalism had moved too far towards transaction banking at expense of "relationship banking". Finally, Politicians and regulators won the argument. Bankers understood that in a world of lower leverage-using money borrowed on the wholesale markets to invest-the old turbo-charged transaction model no longer worked. The libor rate-fixing scandal was the final straw (the Economist/21-11-2012). In addition, the global economic stiil is threatened by global greed.
Global Ethics
Today, greed makes the global economic unsafe. The causal factor why greed can make the global economic crash is that bad character sugests unfair competition among economic actors-corporate, and traders. Its effects are economic crime. These effects had made people in the world conscious to build global movement againts global greed. That movement which strongly opposes the greed is the religious moval designed by clergymen of religious-christian, jewish, budhism, hinduism, and Islam.
Hans Küng is one of the guidances in movement of global ethics. Hans Küng's view in designing the global movement againts global greed is inspirated by religious ethics. Because religious have power or efective energy to control the followers in order to avoid the greed. Global ethics teach us that people in the world must be conscious to a fundamental view-all people in the world is main part of global life, and have responsibiliti to change and abolish the badness which forbids the world transformation to be better life.[]
Michael Douglas stated that greed is good. Greed is right. Greed works. Greed will save the U.S.A. That slogan was said again by Gordon Gekko in a movie, Wall Street. It became a belief adopted by people in the world. In particular case, greed is main energy actuating human activities like bussiness ardor.
For economists, who believe that greed is important, that greed is argued have ability to motivate economic growth. Although over the last three hundred years, our cultural spokesman have expressed increased confidence in the pursuit of economic self interest even when it might lapse into greed. That trend make the greed accepted as good character in pursuit of happiness. But it is not durable as morality of economy. Economic crisis in various countries have indicated that greed is bad for economy imunity.
Economic crises which happen in the world often were caused by human greed. A good book telling on greed history is Davis E.Y. Sarna's book, History of Greed: Financial Froud from Tulip Mania to Bernie Madoff. From that book known that greed is worst character . In this context Sarna stated that greed is an excessive desire to acquire or process more than what one needs or deserves, especially with respect to material wealth. In fact, greed leads us to froud and dihonesty.
Those characters essentially are nasty for human life, and also for economic activities. In moderation if the greed in christian theology is one of the seven mortan sins, unpardonable sins entailing a total loss of grace. In morality of Islam, greed is one of bad habbit which must be avoided by Muslim.
There are some evidences showing that greed lead a countries to economic crises. From classical Athens, greed or pleonexia had emerged as an instrument to distribute the power and resources. On other hand, greed suggested an economic chaos. In modern era, how greed make economy crisis can be understood from recent crises which happen in countries. The last history telling about thesis is the meltdown of 2008.
David E.Y. Sarna doubtlessly blamed greed, hubris, and lack of supervision for the crash of 2008. Even David E.Y. Sarna named that crash as a neer miss for plunging the world into deep depression. It disrupted the lives of many millions of people, and caused enormous pain and suffering to many.
In specific analysis-historical approach-E.Y. Sarna detected that cataclysmic events of 2008, when markets seized up, the government stepped in with a bailout of $85 trillion and ended up owning huge chunks of private sector, and the stock markets collapsed, did not come about overnight, event though their effects became apparent in just a short period of time.
Other case which must be understood is Allied Irish Bank (AIB). The dramatic story on AIB is that a trader at its Allfirst Baltimore-based subsidiary had lost $691 million in unauthorised trading. The factor why unauthorised trading happened at AIB is the poor risk assessment and management control; a lack of management supervision; an inefective internal audit process; and short-signted desire to reduce overheads without regard to the potential long-term consequencess.
The causal factor why the crash of 2008 in USA is desire to take over advantage from depositor. In fact, the creditors-bank in U.S.A-give loans without learning the depositor's ability to re-pay their loans. As a consequence that indiscretion suggest economic crash in USA. Its domino effects also were falling on the other countries at Europe like Spain, and Greece.
Right now, the effect-daunted of greed still threaten the global economic. It implicates the depositor's prefence on bank. The bank clients realised that financial capitalism had moved too far towards transaction banking at expense of "relationship banking". Finally, Politicians and regulators won the argument. Bankers understood that in a world of lower leverage-using money borrowed on the wholesale markets to invest-the old turbo-charged transaction model no longer worked. The libor rate-fixing scandal was the final straw (the Economist/21-11-2012). In addition, the global economic stiil is threatened by global greed.
Global Ethics
Today, greed makes the global economic unsafe. The causal factor why greed can make the global economic crash is that bad character sugests unfair competition among economic actors-corporate, and traders. Its effects are economic crime. These effects had made people in the world conscious to build global movement againts global greed. That movement which strongly opposes the greed is the religious moval designed by clergymen of religious-christian, jewish, budhism, hinduism, and Islam.
Hans Küng is one of the guidances in movement of global ethics. Hans Küng's view in designing the global movement againts global greed is inspirated by religious ethics. Because religious have power or efective energy to control the followers in order to avoid the greed. Global ethics teach us that people in the world must be conscious to a fundamental view-all people in the world is main part of global life, and have responsibiliti to change and abolish the badness which forbids the world transformation to be better life.[]
