Black Markets and Business Blues
Yvan Allaire and Mihaela Firsirotu
This book tells a sad tale. This is the tale of how and why the U.S. financial system and the American model of corporations, touted as examples for the rest of the world, have proven fragile and destructive. It is the tale of how, over the last thirty years, financial markets became populated by funds of all sorts, operators of every breed, speculators of every stripes, and have taken control of publicly listed corporations.
This tale tells of the consequences: short-term management of companies, greed in and around corporations, the loss of loyalty and commitment within companies, weak governance …
This sytem crashed in the fall of 2008. This is the time and opportunity , write the authors, for societies and their governements to make radical changes before the shaken, destabilized maestros of finance recover their aplomb …
What is required, according to the authors, is a new capitalism , a capitalism based on forms of business ownership and compensation which will maintain or bring back some level of trust and loyalty within companies, a long term perspective in their management and a due consideration of the stakeholders that give companies their legitimacy and purpose.
The authors argue persuasively for a set of policies that will bring about this new form of capitalism, one that yields and countenances the good society.