The Greed Cycle Essay - 836 Words

Article Review: - The Greed Cycle, by John Cassidy The article by Thomas Cassidy, points out the instrumental role that greed plays in the modern corporation. Modern Economists have always seen greed as not only a necessary element in the corporate environment, but as also a vital part of the successful evolution of a public company. As the article points out, â€Å"Economists from Adam Smith to Milton Friedman have seen greed as an inevitable and, in some ways, desirable feature of capitalism. In a well regulated and well balanced economy, greed helps to keep the system expanding†. In the early public companies, greed was not seen as a danger, as the implicit trust that managers would not slack off, and would run the company in the†¦show more content†¦They went on to state that competition would not solve this dilemma. This lead to a re-evaluation of the goal of corporations, from merely maximizing revenues, to maximize the value of the firm, as it was determined in the stock market. Once the goal of corporations became maximizing the value of the firm, they attracted wealthy â€Å"corporate raiders†, who used this new corporate philosophy to launch many takeover attempts on companies, with the intent on restructuring these companies, as to increase their stock prices, so that they can â€Å"refloat† them for a considerable profit. Most of these takeovers were financed with borrowed money, hence the term lever ­aged buyouts, or LBOs. As the article states, â€Å"In a typical LBO, the acquirer would buy out the public stockholders and run the com ­pany as a private concern, slashing costs and slimming it down. The ultimate aim was to refloat the company on the stock market at a higher valuation†. Initially this was seen as one of the best remedies for the agency issues that surfaced between shareholders and mangers. However as the economic climate changed, many realized that the LBO was not the answer. â€Å"When the economy went int o a reces ­sion during the early nineteen nineties, many of the firms that had gone private, such as Macy’s and Revco, couldn’t keep up their interestShow MoreRelatedThe Rocking Horse Winner Literary Analysis1048 Words   |  5 PagesThe greed for wealth and materialistic objects is an intrinsic component of human nature. It plays a crucial role as motivation for one to work to achieve financial success. However, when one singularly focuses on money and ignores all else, their greed becomes detrimental to their state of mind. People whose ambitions revolve solely around becoming wealthy and successful often ignore other aspects of life that are equally important for happiness, including relationships, health, and personal freedomRead MoreThe Power Of Greed In Macbeth1488 Words   |  6 PagesIn William Shakespeares tragic play, Macbeth, there is blood, power and greed; all of which can be read with literal and metaphorical interpretations. They intertwine at differ ent points in the story and have different effects on each of the characters including: Macbeth, Lady Macbeth, Malcom, and Macduff. These three ideas create a cycle throughout the story, particularly for Macbeth, as greed leading to the spilling of blood, which can give someone power is ultimately his demise. When ShakespeareRead MoreAmbition And Ambition In Macbeth1240 Words   |  5 Pagesfor treason. 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As his father is sent to prison for his debt he tells Scrooge to â€Å"save your pennies, make a fortune and keep it!† Scrooge keeps this saying with him throughout his life eventually building a habit of greed. When both Scrooge’s motherRead MoreThe Greed for Gold1240 Words   |  5 Pages Bard had replaced the previous master and proved himself to be a better leader, etc. Overall, the order is restored better and we can say that it is because Bard and the dwarves were more justified than Smaug. Their actions weren’t motivated by greed for treasure, they were fair. In Beowulf, the dragon’s hoard was found by an exiled slave in a cave away from the kingdom’s boundaries. The dragon and its treasure has not made an appearance or been heard of before, the town has been in peace forRead MoreEssay about Greed is the Most Influential Vice681 Words   |  3 Pagesperfection. Of all the vices that human possess, greed could be said to be the most influential. 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Something always has to be bigger, faster, and stronger, hence the reason why humans are separated from everything in the animal kingdom. In the visual argument, mankind’s greed is exhibited as the lung in the picture. The missingRead MoreThe Metamorphosis, And The Lord Of The Flies By William Golding1400 Words   |  6 Pagesthe darker side of humanity, and both leave the reader with more knowledge about the world as a whole, and themselves. Both The Lord of the Flies and The Metamorphosis explore the worst parts of the dark, greedy, and nightmarish beast called man. Greed and darkness are always present in man, but it takes situational pressures to pull them out. In both stories, the characters were content with their horrible situations because they hadn’t faced strong outside pressures yet. In both stories this comes