A Las Vegas Illusion
Roger Martin is Dean of the Rotman School of Management at the
University of Toronto
Pre-order his forthcoming book
In response to the question: What does Wall Street have to change to produce better leaders, a different culture and a more long-term focus?
Forget about it. Don’t even waste time thinking about it. The purpose
of Wall Street firms is to trade value for their own benefit not to
build value for the economy either short-term or long-term. While at
one point in its history, a non-trivial part of Wall Street’s activity
involved financing the growth of American companies, that is now a
minor piece of its business. Wall Street is primarily engaged in
encouraging individuals and companies to trade value between one
another and tolling the parties for the service, and trading against
the outside economy for its own account.
Phi Beta Iota: This author not only gets it, he provides a solution. Wall Street, and the Fed, need to be creatively destroyed, and we need to restore bottom-up Human Scale locality-based business. Government “regulation” of financial crime is idiocy on top of illusion.