Dissipate
Diamond Member
- Jan 17, 2004
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Originally posted by: 3chordcharlie
The best thing I could say is that these companies made decisions maximizing their immediate profits. We all know that the corporate world has a shockingly short view of the future - anything beyond fiscal year end is pretty much ignored.
The reality is that these companies were not looking after their customers, their shareholders, or anyone else by building their financial position on an obvious bubble, and they knew it. So what were they doing? I can't think of an answer other than that the little guys were pursuing commissions, and the big guys were chasing quarterly earnings statements and bonuses big enough to last a lifetime. This can be 'highly profitable' in a sense, for some people, but it is not good business.
If you were working for those firms you would be going right along with it, and don't even try to deny that for a second. The Fed created this opportunity for 'bad business,' the firms were just doing what they thought were going to be big profits.