Global stocks fell sharply last week on news of increasing inflation which will limit the Federal Reserves ability to continue cutting interest rates. On Tuesday the Dow Jones Industrials tumbled 294 points following the Fed’s announcement of a quarter point cut to the Fed Funds rate. The financial industry is going through a major retrenchment, losing more than 25% in aggregate capitalization since July. The real estate market is collapsing. You get the picture.
Take the case of Citigroup – a once- great bank brought near to ruin by a grossly negligent board of directors. The cost? A mere $351 billion – that is, only $1,000 for every man, woman and child in America. Blame abounds, but most of it must can be directed to the Citigroup directors – the men and women paid well to make corporate policy, and to oversee its proper execution. But that got me thinking about blame…