Technology and the Scary Recession
According to the Press, “The Great Recession of the 21st Century” officially started in December 2007. The Housing bubble sparked by the financial sector lending money to people and corporations that had creative business models that were insane led to this deep economic downturn.
The impersonal 401k models along with deregulation of the Federal financial control systems, allowed people and institutions like Madoff to steal Billions of dollars of people’s retirement accounts, and non profits accounts. They trusted large funds to irresponsible corporations that hired irresponsible people. I personally have met a lot of Financial Professionals here in New York City, mostly in bars and corporate events where most drink a lot.
The last straw for me was meeting a group of them at a Trump Economic event back in August 2008 doing trades one handed on their Blackberries with a cocktail in the other hand, telling me they have to work 20 hour days, and getting pissed, after losing 100 grand every 10 minutes. They had been drinking hours before we showed up. Would I trust them with my money? I cashed in my investments the next day. I didn’t want my future being traded by a bunch of drunks and on blackberries. How did this come to be? What has happened to our economy, where being in debt, or borrowing large sums of money became the norm. Letting the crooks be in charge, and admiring them.
There must be a technology footprint for every trade. I think the American People have a right to know how all the actions that led to their economic problems, especially if their trades were done in a bar? I think in the new regulations, technology can prevent some of the major problems from occurring again.