How to be rich

Posted: 24 May 2012 in Uncategorized
Tags: , , , , ,

George Grosz, “Berlin Street Scene” (1930)

You’re the CEO, maybe in finance or in a venture-capital firm, paid hundreds of times the average worker’s wage with full benefits—one of those jobs that is expanding once again. A buddy wakes you up with a desperate call: he needs a large purchase of credit default swaps; you’re the only one; at least your own-account trades are doing well. He lent you $200 million last Christmas when you were scuffling; he’s one of the old country-club crowd who party together and look out for each other. If you say yes, you will probably create another financial crisis and might be bailed out again. On the other hand, the board of directors is probably going to increase your salary even if things slow down in another month or two. What do you do?

* * *

The culture of wealth debate has finally arrived!

[with no apologies to Claude S. Fischer]

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Comments
  1. petriesan says:

    Well, the only thing to do is: borrow against the options you will get in two months, on your company’s lie of credit with BearStearns and buy from him an option to purchase, putting him on the hook for 90% of the advance from Bear, then go have some single- malt

  2. Magpie says:

    Prof.

    Come on, these people really understand the working class.

    Don’t believe me?

    This is what Tony Abbott, the next Australian Prime Minister, said:

    “As someone whose grandparents were proud to be working class, I can feel the embarrassment of decent Labor people at the failures of this government”.

    See? Even though he’s successful, bright, competent, handsome and all the other things he undoubtedly is (but not poor), he still keeps the genetic memory of what “those” feel.

    Then he goes on to say:

    “Success is good. We should be grateful to people who put their houses on the line so that others can be employed. We should be grateful to the people who have succeeded in attracting billions of dollars of investment into our country and who have succeeded in employing thousands and thousands of people in their enterprises. We should be grateful to them and this idea that the political contest should be somehow boiled down to some crass fight between battlers and billionaires, it is just so unworthy.”

    QED.

    Tony Abbott
    Address to Federal Budget Reply Luncheon, Sydney
    Posted on Friday, 11 May 2012

    http://www.tonyabbott.com.au/LatestNews/Speeches/tabid/88/articleType/ArticleView/articleId/8711/Address-to-Federal-Budget-Reply-Luncheon-Sydney.aspx

  3. Crissa says:

    Lending money to a friend is really a complicated issue specially that your friend has helped you in difficult times. You are obligated with the “debt of gratitude”. I suggest if you really have the funds and still had an extra you can let him borrow but do it black and white. When in doubt, you can always ask a millionaire advice to make everything clear.

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