Educators From The United States

"The deep problem with the system was a kind of moral inertia. So long as it served the narrow self-interests of everyone inside it, no one on the inside would ever seek to change it, no matter how corrupt or sinister it became"

"The orders resting on BATS were typically just the 100-share minimum required for an order to be at the front of any price queue, as their only purpose was to tease information out of investors. The HFT firms posted these tiny orders on BATS—orders to buy or sell 100 shares of basically every stock traded in the U.S. market—not because they actually wanted to buy and sell the stocks but because they wanted to find out what investors wanted to buy and sell before they did it. BATS, unsurprisingly, had been created by high-frequency traders."

"The U.S. stock market was now a class system, rooted in speed, of haves and have-nots. The haves paid for nanoseconds; the have-nots had no idea that a nanosecond had value. The haves enjoyed a perfect view of the market; the have-nots never saw the market at all. What had once been the world’s most public, most democratic, financial market had become, in spirit, something like a private viewing of a stolen work of art."

"He now suspected that every human being who knew how high-frequency traders made money was making too much money doing it to stop and explain what was going on."

"Someone out there was using the fact that stock market orders arrived at different times at different exchanges to front-run orders from one market to another."

"Why, between the dark pools and the public exchanges, were there nearly sixty different places, most of them in New Jersey, where you could buy any listed stock? Why did the public exchanges fiddle with their own pricing so often—and why did you get paid by one exchange to do exactly the same thing for which another exchange might charge you?"

"You see, I’m the event. I am the news"

"The best way to manage people, he thought, was to convince them that you were good for their careers. He further believed that the only way to get people to believe that you were good for their careers was actually to be good for their careers."

"The world clings to its old mental picture of the stock market because it’s comforting; because it’s so hard to draw a picture of what has replaced it; and because the few people able to draw it for you have no interest in doing so."

"Yet another hedge fund manager explained Icelandic banking to me this way: you have a dog, and I have a cat. We agree that each is worth a billion dollars. You sell me the dog for a billion, and I sell you the cat for a billion. Now we are no longer pet owners but Icelandic banks, with a billion dollars in new assets."

"Spain and France had accumulated debts of more than ten times their annual revenues. Historically, such levels of government indebtedness had led to government default. “Here’s the only way I think things can work out for these countries,” Bass said. “If they start running real budget surpluses. Yeah, and that will happen right after monkeys fly out of your ass.”"

"All that was clear that the profits to be had from smart people making complicated bets overwhelmed anything that could be had from servicing customers, or allocating capital to productive enterprise."

"The big Wall Street firms, seemingly so shrewd and self-interested, had somehow become the dumb money. The people who ran them did not understand their own businesses, and their regulators obviously knew even less."

"The fuses had been lit and could not be extinguished. All that remained was to observe the speed of the spark, and the size of the explosions."

"Each firm held its rope; one by one, they realized that no matter how strongly they pulled, the balloon would eventually lift them off their feet."

"He walked around the Las Vegas casino incredulous at the spectacle before him: seven thousand people, all of whom seem delighted with the world as they found it. A society with deep, troubling economic problems had rigged itself to disguise those problems, and the chief beneficiaries of the deceit were its financial middlemen. How could this be?"

"The longer-term the option, the sillier the results generated by the Black-Scholes option pricing model, and the greater the opportunity for people who didn't use it."

"The model used by Wall Street to price trillions of dollar's worth of derivatives thought of the financial world as an orderly, continuous process. But the world was not continuous; it changed discontinuously, and often by accident."

"Looking into it a bit, Jamie found that the model used by Wall Street to price LEAPs, the Black-Scholes option pricing model, made some strange assumptions."

"Even as late as the summer of 2006, as home prices began to fall, it took a certain kind of person to see the ugly facts and react to them-to discern, in the profile of the beautiful young lady, the face of an old witch."

"Here was a strange but true fact: The closer you were to the market, the harder it was to perceive its folly."

"Incredibly, at this critical juncture in financial history, after which so much changed so quickly, the only constraint in the subprime mortgage market was a shortage of people willing to bet against it."

"The CDO was, in effect, a credit laundering service for the residents of Lower Middle Class America. For Wall Street it was a machine that turned lead into gold."

"the more he studied Buffet, the less he thought he could be copied; indeed, the lesson of Buffet was: To succeed in a spectacular fashion you had to be spectacularly unusual."

"Ever since grade school, when his father had shown him the stock tables at the back of the newspaper and told him that the stock market was a crooked place and never to be trusted, let alone invested in, the subject had fascinated him."

"A credit default swap was confusing mainly because it wasn't really a swap at all. It was an insurance policy, typically on a corporate bond, with semiannual premium payments and a fixed term."

"These guys lied to infinity. What I learned from that experience was that Wall Street didn't give a shit what it sold."

"A thought crossed his mind: How do you make poor people feel wealthy when wages are stagnant? You give them cheap loans."

"I confess some part of me thought, If only I'd stuck around, this is the sort of catastrophe I might have created."

"I'd stumbled into a job at Salomon Brothers in 1985, and stumbled out, richer, in 1988, and even though I wrote a book about the experience, the whole thing still strikes me me as totally preposterous-which is one reason the money was so easy to walk away from."

"Innocence and optimism have one basic failing: they have no fundamental depth."

"The book combines history, sociology, political science and prophecy. The first two-thirds of the book features a critique of modern American society and its consumerism and conformity. In that, it was far from unique. But Reich also wrote about three categories of consciousness. Consciousness I was the traditional self-reliant outlook of early America. It was replaced by the New Deal conformism of organizational society, Consciousness II. … It was Consciousness III, the counterculture of '60s youth, that attracted the most controversy. Reviews were mixed but mostly negative. For some reviewers, when it came to Consciousness III, Reich was politically naive and excessively romantic. He celebrated the hippie lifestyle and the use of psychedelic drugs. Marijuana "is a truth serum that repels false consciousness," Reich wrote. Reich was praised for capturing the spirit of the counterculture and struck a chord with parents by making it understandable and non-threatening. The book was written "with the rigour of an intellectual and the enthusiasm of a teenager," wrote law professor Rodger Citron in a 2007 biographical essay on Reich."

"What is lacking today is that people are not in any way experimenting with a different way to live, a different way to feel, a different way to be. The things that troubled young people in the '60s and the things that trouble young people today seem quite different, in the sense that the troubles today are mostly material trouble — I can't get a job; I can't support a family; whereas the complaints in the 1960s were more spiritual — I don't feel like a real person, or something like that. However, they are related. Whether you're complaining about spiritual emptiness or material emptiness, you're ultimately complaining about the same system that's creating both kinds of emptiness. That's the link between The Greening of America of 40 years ago and the way young people are feeling today."

"I see self-destruction now on a grand scale. That is, the unwillingness to pay for the things society needs. That's the most basic kind of self-destruction. That we're not prepared to pay for schools, we're not prepared to pay for highways. That is self-destruction. What are we doing to ourselves? It is nuts."

"The question was what's happening to the individual in America? Is the individual going the way of the environment, being destroyed? In other words, were we becoming the creatures of the machine? That was the way people thought in the '60s. Now maybe that's passé today but that's the kind of thing people thought about. Are we turning into machines? They wanted to rebel against that. Their rebellion cannot be called a success by any means, far from it. Those of us who tried are very grateful that we tried to the degree we did. Anybody who achieved any success against the machine feels good about it."

"It gave people a great leap of hope, made people feel good. This was a world that could get better, a whole lot better. I might say to those who stuck with it in some way or other they will still swear by the values of the '60s."

"There is a point at which material things offer less than do some nonmaterial things. We ought to be able to live on a reasonable level and at the same time have others live on a reasonable level. Then we would not be afraid to work in our cities, we would not be at war with ourselves, which is characteristic of people in this country. If we were at peace with ourselves, we would be able to see other less material, but still quite rewarding, horizons. In The Greening of America, I did not mean that we would all become richer in material things, I meant that we would all become richer in the totality. I still think it is possible for that vision to become a reality."

"All of us are responding to the fact there is no system that can keep any promises. Everybody is fighting each other under the illusion that it is the "other people" that are causing the problem. We don't realize that we are all in the same boat. We are all suffering from the absence of a system that can pull us together and assure us that the results of each person's work will come back to him and enhance his life in some way. Neither Democrats nor Republicans today offer any vision of how we can overcome our present difficulties and build a more satisfying life. Both offer merely palliatives and, at best, a holding pattern. We have to look beyond the politicians to see a different future."

"There were various kinds of direct action in the nineteen-sixties: the Civil Rights movement, in which minorities realized that nobody would do anything for them, that they had to do things for themselves; the women's movement, in which women realized they themselves had to do something about their rights; the environmental movement; and other social movements. The point is that people could not get what they wanted through the system — they had to get it directly. It is no wonder that what began as an idealistic concern for those who were deprived of their rights led to a great deal of selfishness by those who were not deprived. And here lies the affinity between the radicalism of the nineteen-sixties and the conservatism of the nineteen-eighties. Both grew from the same soil: They are different responses to the same problem."

"What we need is a concept of "gross national cost." Life is a balance sheet, not simply economic growth. It is income and outgo. And until we know what the cost of growth is we will continue to operate under an illusion. As long as we consider only the growth of goods and ignore the growth of personal and community well-being, we will be impoverished by growth. That is what is happening in our society today."

"Liberals placed an unreasonable amount of faith in large institutions: unions, foundations, big government, large corporations, and universities. These institutions are based on principles that are antithetical to democracy. They are not democratic, they are hierarchical: Someone is at the top and everybody else is at the bottom. Their policies are not made democratically, they are made at the top. These institutions are also not egalitarian. They operate by administrative discretion and authority, not the rule of law: There is no legislature, no group lawmaking body. The individual in the large organization does not have the kind of constitutional rights that an individual in the society at large has. There are no protections of autonomy and free speech. Employees can be fired for many reasons. We need to constitutionalize large organizations to protect the people within them, to ensure that they can be politically outspoken."

"The liberals were right when they insisted that we had enough food and goods for all of our people. But they did not — and we still do not — know how to distribute those goods in a rational way. We have failed to figure out how to turn this abundance into an advantage. The liberals were also right about labor-saving. If we evenly distributed the work that needs to be done, there ought to be a lot of time left over for everybody to have the leisure that people need. But we have managed to reverse that. Today, a great many people cannot find any work. People are dispossessed and cannot support themselves or their families. Many are homeless. For many others, work has become a rat race: something to be endured, not enjoyed. Today we are witnessing an impoverishment: the apparent drying up of resources for all kinds of things that are badly needed. We seem to have no money for housing, for education, or for health and social services. And yet we have a deficit, and we are told by candidates for public office that we must cut the federal budget even more. This impoverishment is a mystery."

"The liberals were wide-ranging in their interests, ready to question the orthodoxies of the time, and looking for new horizons. It is always difficult to find people like that, but it is even more difficult today. The liberals of the nineteen-thirties were diverse, but they had a common vision. They accepted democracy, the free market, and capitalism. However, they thought that unless the market was not corrected or ameliorated, there would be child labor, neglect of the elderly, dangerous and harmful consumer goods, monopolies squeezing people out of business and forcing down wages — in short, there would be the horror of Great Britain's Industrial Revolution before the British began passing social legislation."

"As Reagan conservatism is becoming less popular, people are asking: Where do we go from here? We can also ask: Does the last era of liberalism provide any indications as to where we might or should go from here? The liberalism of the nineteen-thirties emerged after the catastrophe that resulted from the conservatism of the nineteen-twenties. Conservatives had been in power for a long time, and ended by nearly wrecking the country. Liberals came along and performed a rescue operation. Ironically, they are credited with saving the establishment, which they surely did."

"The country we live in is a laboratory. We have one experiment after another. Unfortunately, it is not a laboratory where no one gets hurt: some lives are enhanced, others are ruined. We have to view our society with concern and passion, and see what we can learn from each of our experiments. When we get upset and angry about politics — whether it is conservative, liberal, or whatever — we tend to think in terms of right and wrong, not what we can learn."

"Once a person reaches Consciousness III, there is no returning to a lower consciousness."

"No person's gain in wisdom is diminished by anyone else's gain."

"Surely this new age is not a repudiation of, but a fulfillment of, the American dream. What were the machines for, unless to give man a new freedom to choose how he would live?"

"Our history shows that what we must do is assert domination over the machine, to guide it so that it works for the values of our choice."

"The crucial fact to realize about all the powerful machinery of the Corporate State — its laws, structure, political system — is that it possesses no mind."