Greed Powered

http://www.reuters.com/article/idUSTRE60K0RW20100122

Please read it if you want to have any idea of what my ramble is about.

It is interesting to see the repercussion of Obama's new bank plans. On one hand, the EU's response sounds logical coming from an economic point of view. Limiting the size of the banks will make it even harder for the EU banks to survive with the hulking American giants around. On the other hand, it could just be an excuse to allow the banks to continue to horde cash through hedge funds and the likes. Both rationales, are logical, just that one is powered with more greed than the other.

Something that is even more interesting is the repercussion that this announcement have on the stock market. Things have been down and many predicted that it will stay that way for a while. Obviously the above policy is not the only cause, but to deny its influence will be foolishness. So, a few postulations: either a)Obama plan works, the hedge funds are quickly dumping the stuff that they have in order to manage enough funds to stay alive without major bank support; or b)people are worried that the banks will not be able to attain huge profits out of an activity that does not contribute to society. Translation? People are worried that greedy people cannot BE greedy anymore thanks to Obama's plan right there.

A brief scan on the comments on Reuters and the problem is easily identified. People are supporting the Banks. The very same banks that almost crashed the damned greed machine (economy) a year ago, the very same banks that ups the executives' bonuses after they made enough money to pay off their bailout cash, the very same banks that are powered not by the motivation to serve as an economic entity in the facilitation of transformation of savings into capital, but by personal greed.

People often cringe at the idea of communism, probably caused by the paranoia induced by the cold war, or the fact that it had time again fallen victim to human greed and collapsed. However, take a look at what we are substituting communism with, it is a -ism that is based upon and powered by human greed. It assumes that everyone is greedy and thus profit maximizers.

And people go around wondering why are there jobless and homeless or why the world is so screwed up. Think again =P