In the King James Version of the Holy Bible, Proverbs 16:18 warns that “Pride goethe before destruction, and a haughty spirit before a fall.” In no segment of society does this adage fit so snugly than in Wall Street.
How is it that these brilliant economic theorists from Harvard, MIT, and Cal Tech make such epic mistakes? How is it that so many astute business minds, fixated obsessively on the minutiae of the market, fail to see the massive hurricane bearing down on them, until they are consumed?
They should know better.
Based on my experience counseling Wall Street professionals, the same reason these brilliant minds fail to act is the same reason they are drawn to the Wall Street in the first place, like so many greed moths to a lantern.
That reason is money and the fantastically manipulative mind-warping power it has over the human psyche. Many of the greatest financial minds of our time have been drawn asunder by the psychological herd mentality driven by an insatiable thirst to churn huge profits, take insane risks jeopardizing the world financial community.
Such, such are the joys and pitfalls of penultimate greed and narcissism.
Yet, less than three years after the fall, as the fragile economy inches higher with each closing bell, Washington rattles its reform saber and major investment conglomerates ward of the litigious volleys of shareholder insurrections; is there a true culture change in the air?
In a December 17, 2009, posting on Crain’s New York business.com, Columnist Hilary Potkewitz reports[1]:
The scent of money that drew many professionals to jobs on Wall Street has been dissipating, according to a survey of out-of-work finance folk released Wednesday.
The survey of financial job-seekers, conducted by financial recruiting service OneWire.com, showed that 41% of those polled said they no longer believe finance to be as desirable a career path as they once did.
Contrast that to the firm’s June survey, when 84% of respondents said they would still choose a career in finance if given the chance to “start over” in their professional lives.
OneWire.com attributes the disparity to the different phrasing of the questions in the survey—and to the proposed caps on bonuses and pay packages that have been floating around Congress recently.
I wonder, though, when the storm subsides and the blood is once again back in the water, will the sharks resume their frenzy?
Of course they will.
The question is, will you have the sense of self-awareness of your Gyroscope intact to stay above the fray.
[1] “Jobless Wall Streeters sour on finance careers,” by Hilary Potkewitz, December 17, 2009, Crain’s New York business.com