Thirty-five, forty years ago my Dad was building residential homes on spec. When he would go to sell them, of course, the banks were loaning 80%, buyers would say, I'd like to buy from you but I don't have the downpayment.
John Contractor over there says he can get me in the house for 10%, why can't you. And of course, the deal was, they would go to the closing and lie, the contractor would say, yes, the buyer paid me XXX dollars, the banker would nod and wink, and they'd close the deal. Everybody was doing it. That was the justification.
So John Contractor and the bankers got rich, and my Dad ended up leaving that aspect of contracting. And never got rich.
Thats moral hazard. And everyone slid down the slope and the housing market was destroyed. But alot of people made a lot of money and got away with it. Cheaters don't always win but a lot of winners cheat.
Me? I am a proud son.
Let me go Paul Harvey, and tell the rest of the story.
In my own career, I found myself as an employee and taught to "cut corners" in various ways and yeah, I did it. For a number of years I never really questioned it. I have no excuse. Everyone was doing it.
Then, a couple of incidents happened and made it pretty clear that these acts did have consequences and people were affected. And it became clear that I was on a collision course with the point where clearly unethical would have crossed into illegality. And, at that point I pulled back.
My career diverged with others who ended up very, very wealthy. But some of them suffered ruined lives and one in particular is under investigation as I type this. Because once you reach that point where you know you've gone over the line, and you get away with it, the tendency is to just go further. People get arrogant. Like Armstrong. He is in reality, contemptuous of us all.
Well, whatever. I turned out to be a poor pirate. Not the end of the world. I made a choice I can live with.
Watching Armstrong and Oprah on Oprah.com.
Very interesting stuff.
Armstrong is a psychopath.
Psychopathy (/saɪˈkɒpəθi/[1][2] is a personality disorder that has been variously characterized by shallow emotions (including reduced fear, a lack of empathy, and stress tolerance), coldheartedness, egocentricity, superficial charm, manipulativeness, irresponsibility, impulsivity, criminality, antisocial behavior, a lack of remorse, and a parasitic lifestyle.