Peter Baston
*IDEAS*
/www.ideapete.com/ <http://www.ideapete.com/>
glen e. p. ropella wrote:
Thus spake peggy miller circa 10/17/2008 09:32 AM:
Translation -- statistics and common sense verified that the larger the
operation becomes, with noticeably poorer decisions happening at the size of
business over $1 billion in profits, matched by replacement of
ownership/manager with non-owner managers, judgment fails. Caring appears to
be a part of ownership. Somethings counter this problem, like profit sharing
-- giving workers part of profits -- but ownership of business and smaller
size seems to be almost irreplaceable. Small banks and credit unions, owned
locally, rarely fail. The owner's name, reputation and thus decisions are on
the line.
Why is it that we are (and continue to be) so myopic to the flaws to
such large-scale abstraction (aggregation and accumulation)?
It seems (to me) that we should have learned this lesson thoroughly when
we demonstrated that many contexts call for distributed as opposed to
centralized solutions. We had to learn that lesson over and over in
various disciplines. Why hasn't that knowledge translated to corporate
governance? (Or government even?)
Centralization, abstraction, aggregation, and accumulation seem to be
the dominant tendency.
My undefended conjecture is that such abstraction is the only way an
individual can _both_ multiply their money _and_ keep the consequences
at arm's length. I.e. it's the only way one can both make butt-loads of
money and retain a clear conscience. (Gee, do I sound like a socialist?
or what? ;-)
But it's also quite possible that the only way to maintain a "survival
by growth" method is to engage in such accumulation. For corporations,
it's obvious. For the federal government, it's less so because it's
reasonable to assume that the management of 3.5 million square miles and
350 million people requires a centralized solution.
How many names of the managers of these large failed institutions do we
know? a couple? and they get paid handsomely either way ..
This reminds me of:
Thus spake peter circa 10/01/2008 09:50 AM:
Sure I will dig out some names ...
[...]
glen e. p. ropella wrote:
But can you help me reduce my ignorance? Which "complexity science
geniuses" created these credit models? And which ones do you think
might go to jail?
Peter? Did you ever get a chance to dig up some names of these
"complexity science geniuses"?
Lets see how accurate these names are and when they get their subpoenas
Rothman / Kearns / Goldberg / Cushing / Jessop / Mouicci
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