ETHICS IN FINANCIAL CRASHES

Ethics in Financial Crashes



Ethics in Financial Crashes

Introduction

The purpose of writing is to understand the role of ethics in financial crashes, panics and manias with knowledge of the complexities of the case of THE MATCH KING. There are many ways to approach as complex a topic as money or a financial crash. An integral view would require it to be approached from both the inner and the outer viewpoints. Such inner and outer dimensions of reality are synthetically summarized in Ken Wilber's classical four quadrant analysis.1 All fields of knowledge are classified by distinguishing between the Interior (the domains where the aim is the interpretation of meaning) vs. the Exterior dimensions (where the purpose is description of behavior). This approach is completed by distinguishing between the Individual vs. the Collective aspects.

Role of a particular con/icon in the making, breaking of a Mania/crash/panic/bubble/fraud

When people ask me who my icon or my favorite actress or my role model is, without a hint of doubt, i would answer "it's Meryl Streep!” People who really know me might find me really annoying because I talk about her most of the time, but it's who I am. And I myself too am intrigued on how I got to love her right now. Well, I don't want to label it as an obsession, though it really looks like it is. It is more like admiration, finding someone to look up to. Not really imitate or something. It's just that I find Meryl Streep so real and humane, unlike most of the celebrities we know today.

I must say that I have been "really" searching for an idol or an icon. Every time I get to watch a movie that tickled my taste or senses perhaps, I search for the cast and the crew and all that -the actors, the production staff and all that. And I have to say that I have searched a great deal of people and all things movie-relegated just to find someone suitable or perhaps "fit" enough for my standards (it's not like I am a hard-to-please individual though). I have search from Angelina Jolie to Diane Keaton; from Paul Walker to Jack Nicholson. And as much to my dismay, I have not found the right icon for me.

Extent to which Kindleberger's framework/approach/model

Illuminates/obfuscates the history

To begin, Kindelberger takes the traditional thought that people are rational beings and introduces the fact that speculation leading to destabilization is very much present, and that many of history's crashes have come from this irrational behavior, i.e. manias and panics. To explain, one must first define what a mania is, what a panic is, and ultimately, what a crash is.

According to Kindleberger, a mania is basically just excessive speculation in the market. It follows, as Kindleberger suggests, that if one observes someone else, i.e. a friend, who is making money through speculative investments, one tends to follow. Mania is movement from cash or money into illiquid real assets. As more and more people begin to investment on ...