[Dialogue] Fw: Morality and the Economic Crisis

[Janice Ulangca]

----- Original Message ----- 
From: George W Ensinger 
Sent: Wednesday, October 08, 2008 12:01 PM
Subject: Fw: Morality and the Economic Crisis


I have heard that Adam Smith presumed an ethical foundation in his writing. The following is worth considering.
GE
----- Original Message ----- 
From: inward/outward 
To: George Ensinger 
Sent: Wednesday, October 08, 2008 5:01 AM
Subject: Morality and the Economic Crisis



     


     

           Morality and the Economic Crisis

            N. Gordon Cosby




            I have a friend who is an attorney with a deep knowledge of the national economic crisis. He made two interesting comments:

            He first said that "liquidity" is not the real problem in the market right now---it is that no one knows what anything is worth. So much stuff of questionable value is hidden on balance sheets that buyers no longer know if something is worth what it is trading for, less, or more. So no one really knows how bad things are and cannot put an efficient, valid price on things. In other words, blindness about value. That destroys the logic of the "free market" because efficiency is based on "transparency" of value.

            Second, he said that as a result of the first problem of blindness about value, it is difficult to know if persons you are selling to can meet their commitments to you. In other words---blindness about the solvency of parties in the market. That also kills an "efficient" market because it destroys the needed trust that makes the market work.

            In spiritual traditions of all kinds, blindness is an old theme----people who corruptly set out to blind others end up blind themselves. We ignore that wisdom at our peril. Morality, once again, is proven to be fundamental to an efficient marketplace.

            Source: Conversation with a friend, September 28, 2008

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      Point very well taken.  Thanks, George.  I've been thinking of those fierce Hebrew prophets who thundered that there's gonna be big trouble if you keep oppressing the poor, and ignore justice and righteousness.  As in downright cheating the vulnerable with tricky mortgages  and manipulating the corporate books in the name of profit.

      George, how about sharing this with an ICA list serve?  
      Janice Ulangca

      Janice,
      Nice hearing from you. Inward/Outward often has good stuff. You can join, if you like, using the link at the bottom. You may share this quote with the list serve. I'm not on it.
      All the Best!
      George 

     

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