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    9 Replies Latest reply on Oct 9, 2008 10:35 AM by iventures

    Why not arrest CEOs behind the money mess?

    iventures Adventurer
      Why can't we just find the executives responsible for this mess, round them all up and throw them in jail?
        • Re: Why not arrest CEOs behind the money mess?
          Iwrite Pioneer
          So far, I don't think they broke any laws. Their actions are immoral, but not illegal. Look at Enron, only a couple of people were put on trial. Running a business into the ground and doing damage to the economy is not a crime, unfortunately.
          • Re: Why not arrest CEOs behind the money mess?
            LUCKIEST Guide
            the money mess

            Maybe we can NOT arrest them, How about we make them pay back

            all the money they got.
            • Re: Why not arrest CEOs behind the money mess?
              NoBullFunding Scout

              If driving a business into failure was a crime, 80% of small business owners would go to jail too. Yes, they made bad decisions and were greedy, but to call it criminal is to me a stretch. People didn't seem to mind when they bought their dream house. Since when are we not responsible for our financial decisions. Since when is it the cooks fault when we eat too much food at the buffet?

              I can understand everyone's outrage over these guys getting rich and then jumping ship, which certainly is frustrating. The fact is that the financial instruments used during this whole mess were extremely complicated, even to the point that the smartest people were making decisions that we, well, kind of dumb on a common sense standpoint. The whole mess is not attributable to one thing or person, but a culmination. Investors wanted something to invest in and craved mortgage back securities. In turn, banks loosened credit standards in order to have more mortgages to sell. There were some very confusing financial devices created in an attempt to mitigate the risks that went along with the mortgages, which made the "experts" declare them to be good investments.

              My concern is that the big keep getting bigger. If the failure of AIG can cause a global economic tsumani, why is it a good thing for the big banks to be buying up the failing ones left and right?
              • Re: Why not arrest CEOs behind the money mess?
                fundamentals Wayfarer

                Iventures

                I sense and appreciate the frustration behind your question. Unfortunately there is no easy solution facing all business owners (small or large) in how we resolve the economic situation we currently are facing. Greed is not a crime, it is an ethical/moral issue. The question I always ask my self is "how much is enough"? Perhaps this is another opportunity for us to learn from the past and history. Recall the S&L scandal, Mike Milkelin and junk bonds,

                 


                In situations like MCI and Enron, there was more than greed but actual fraudlent activities, with mis-representations of the financials. There is the difference and people like Bernie Ebbers and the Enron gang are serving time.

                I read the note from nobullfunding, and I have to agree with him. The only point I would add is that we as investors are responsible for our actions.

                Fundamentals
                  • Re: Why not arrest CEOs behind the money mess?
                    NoBullFunding Scout
                    Fundamentals, I agree that investors are also responsible for their decisions. I don't think anyone believes that they deserved to be bailed out, but unfortunately not bailing them out would cause a massive domino effect. That makes me nuts to think that we to help the rich guys. When my business failed, I don't recall anyone coming to my rescue....
                      • Re: Why not arrest CEOs behind the money mess?
                        iventures Adventurer
                        Hey guys great responses.....I was just trying to get comments for the article posted on msn.com. I personally think instead of just pointing fingers and making a circus like we always do, we need to get smart for once. It's the only real way out of this cycle of decay. Otherwise, you can expect the same thing to happen over and over.

                        Instead of a witch-hunt where everybody scapegoats a few greedy misanthropes, perhaps it's time for people to educate themselves. Our collective economic ignorance got us into this mess. It is our collective economics ignorance that lead us to initially accept and to now tolerate the Federal Reserve. Some people are even so economically misinformed as to think that the Federal Reserve is there to save us from these crises. But only an informed person can understand that the Federal Reserve is the cause of the problem merely posing as the cure.
                    • Re: Why not arrest CEOs behind the money mess?
                      iventures Adventurer

                      Congress has made a lot of noise about ensuring wealthy CEOs don't profit from the proposed bailout. But so far, it looks like executives won't have much to worry about.
                      • Re: Why not arrest CEOs behind the money mess?
                        Empower1 Newbie
                        I hate to say this in a place and time where personal accountability is an anomily, not a norm. What happened to our individual responsibility to know what living within our means----means? I worked as a real estate agent for years in a market where everyone in the market was making crazy money hand over fist. Not only were the lenders, real estate professionals and builders making short-term decisions that really ended up breaking them, but sadly, I myself saw buyers who despite good advice bought homes that did not fit into their budget. I lost my job four months ago, but still have a few months savings to keep the boat afloat. We need to start thinking about how to take care our ourselves in the event of hard times....not waiting for someone to bail us out because of our own bad decision-making. Of course, there are exceptions, but for the most part our predicament is based in overindulgence.
                        • Re: Why not arrest CEOs behind the money mess?
                          iventures Adventurer
                          Global CEOs brace for the worst-At a Fortune conference in London, top brass see a downturn that could last for years. At a Fortune gathering this week, chief executive officers of large global companies and some of their top advisers expressed grave concerns about the state of the world economy, and are preparing for at least a couple hard years ahead.