"There is no recovery from moral bankruptcy."

As I was bopping around Blogtopia this evening (Saturday, October 25), I was momentarily heartened at finding this simple and succinct description in an honest reaction to Alan "Greenspan's blind spot" (what I have come to see as his "willful blindness"), evident in his testimony to Henry Waxman's House Oversight and Government Reform Committee, which is investigating the Wall Street meltdown (from Tim Rutten at the Los Angeles Times):

The idea of loyalty -- or of just a sort of reciprocal obligation, for that matter -- simply doesn't operate on Wall Street or much of anywhere in American business any more. The notion that CEOs and other executives would forgo a chance to enrich themselves to keep their institutions solvent or their stockholders' investment whole seems quaint in today's environment. That's true even when the executives' good conduct is supposedly guaranteed by an equity stake, as it is in investment banks. What Greenspan and the rest of the aiders-and-abettors of Wall Street's greed spree don't want to admit is that there's something wrong in the economy and financial system that new regulations on trading and disclosure won't correct. Long before the financial system melted down, American business' share of the social compact melted completely away. The corrosion didn't begin at the top but at the bottom -- with the renunciation of any corporate loyalty toward working men and women. For nearly as long as Greenspan has hovered in the financial stratosphere, U.S. companies have been encouraged to treat their workers like any other "expense." Wall Street has rewarded -- indeed, lionized -- companies "tough enough" to treat workers like the electric bill. Presto! Layoffs became "cost management." No one begrudges a company about to go out of business the right to cut payroll, but now nobody blinks when a CEO throws people out of work for an uptick in the stock price or to ease the service of ill-considered debt. It's been a long time since anyone who analyzes the economy has been willing to say that it's immoral for a profitable firm to deprive families of their income and health insurance, to strip hardworking men and women of labor's dignity.

"I did not forecast a significant decline [in the housing market] because we had never had a significant decline in prices," Greenspan told the committee, adding that the Fed's record of economic foresight remains unequaled. "We can try to do better, but forecasting ... never gets to the point where it's 100% accurate."

Perhaps only an economic education prepares a man to draw as his conclusion from catastrophe the gnomic declaration that fallible human beings are not infallible. Some things, however, are true 100% of the time: Societies in which the few are allowed to fatten themselves without limit on the labor of many are not just; they aren't even particularly productive for very long. Countries -- like companies -- that cling to notions that allow some to pursue their own interests by behaving indecently toward others come to bad ends. There is no recovery from moral bankruptcy.

Read the rest here and weep again. Suzan