Monday, August 20, 2012
OK it has been three weeks since Draghi said he would do whatever he could...now let's see...the next day Spain was making contingency plans in case it left the EU. Recently the head of the Dutch Socialist Party said the EU might break up...the Socialist party??!!! Finland is thinking of leaving the EU. And of course the Bundesbank objects to the ECB bond purchases as it should...Greece is having the next deadline with its usual financial crises.
What part of behavioral science don't they get, as they focus only on the financial aspects? This situation is totally backward. In any ethical responsible social system in which good results are desired over the long term, good behavior should be rewarded and bad irresponsible behavior should be punished. Rocket surgery this is not.
But in the EU so far it has been just the opposite. So-called "profligate countries" are being rewarded for bad behavior (except for minor sacrifices) and good countries--here, hardworking Germany--is expected to take the punishment for the behavior of the "bad" countries. Upside down and backwards from the behavior needed for desired results! Why should Germany be punished for its own good behavior?
Add to this that European banks are more leveraged and more thin on capital reserves than U.S. Banks, and this stew will not turn out to taste savory but bitter.
Any system in which the best are punished and the worst rewarded is not only unsustainable... it is sick!
Why? Because such a system incentivizes the worst behavior which will expand and choke out disincentivized good behavior and ultimately sink the entire system...like Communism in Russia
which I predicted years before the wall fell.
Again, my favorite now-tragic but real current Economist joke:
"The problem with socialism is that you run out of other people's money."
Wishing them all the best in Europe but fearing they have placed themselves in an impossible position.
Hoping and praying we can pull our own nation...the U.S. back from the perils of this brink also... we are at a crisis of trust in leaders due to the socialist policies here...I have never seen so many in fear and upset and despair as I have during this administration....
Peace and prosperity,Dr. Linne
"Build on Your Best" Giving you the power to predict, profit, protect
Dr. Linne Bourget M.A. M.B.A. Ph. D
Pioneer, strengths-based leadership, Master Intuition System
Founder/CEO 480-767-1717 Institute for Transformation Leaders& Consultants Strategist, Consultant, Speaker, Author of From Old Power to New Power – Which Leaders Will Survive? Co-author with Mark Victor Hansen, Deepak Chopra, Amazon #1Bestseller, Wake Up, Live the Life You Love - Finding Personal Freedom
Author, What You Say Is What You Get® Series: The Secret Language of Great Business Results Dr. Linne's Leadership Guides Series Positive Quotient PQ® Questionnaire Appreciative Quotient AQ® Questionnaire Secrets of Powerful Appreciation for Parents and Children, 2 CD Audio by "Dr. Appreciation" Appreciation: The Secret Key to Magical Marriage Coming soon!! Power Course on Intuition for Business Leaders! "The greatest challenge is taking complete responsibility for your own greatness." Dr. Linne Copyright 2005-2012. All Rights Reserved. Dr. Linne Bourget, M.A., M.B.A., Ph.D.