Thursday, January 15, 2009

Tyranny of the short term

In this NY Times piece, Michael Lewis, also a contributing author at Vanity Fair, writes a clear summary on the financial crisis and the systemic problems on Wall Street that caused this. As it all comes down to long term interest vs. short term gain, the need for consistency in carrying out one strategy, not hopping from one executional idea to the next, and the difference of blind-folded risk taking vs. true courage it i not only gives a clear explanation on the crisis background but also offers a nice analogy that brands and people can learn from. To me it was a very clear reveleation on what was and still is wrong with the U.S. financial system.