As a result, someone who bounces a bad check in Dubai can spend as long as four years in prison. That also explains why around 40% of the inmates at the Dubai Central Prison are there because they defaulted on bank loans. Under Dubai law, most of the Wall Street movers and shakers would be in prison—indefinitely.

Moreover, some prisoners have to stay in prison beyond their sentence until their debts are paid. With this kind of judicial system it would seem likely that very few people would take on a debt without being absolutely positive they would be able to pay it back…no matter what.

Quite a contrast to the American mantra of “charge, charge, charge,” regardless of our ability to pay the debt…because we can always just walk away from our debt obligation if we can’t (or don’t want to) pay it. Or, if you are big enough, the government will pay it for you.

I wonder what would happen to our economy if there was a little more responsibility—with more dire consequences for defaulting—placed on investors…as well as the U.S. consumer?

Anyone have any thoughts?

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• In 1995—Assets of the 6 largest banks equaled 17% of GDP.

• In 2010—Assets of the 6 largest banks equaled 63% of GDP.

With more and more high-tech and I-tech being created and produced overseas, it appears that “banking” has taken over as the U.S.’s no. 1 industry—and we all know how that ‘s working out.

It also appears that the impending banking “reform” bill now in Congress will do little to help the situation. All the responsibility for regulating the banking system is being left with the Fed, without specifying limits or guidelines. Wasn’t it the Fed that allowed the last banking disaster to develop?

Ah, for the good old days when America actually made things of value, and a bank’s primary job was to loan money to the companies that made those things.

Civility and thoughtfulness and manners–it was George Washington’s forte and ‘competitive advantage,’ and it’s worked for me in far, far, far more humble settings.

–Tom Peters

Costco publishes a monthly magazine called the “Costco Connection,” and in each issue the editors pose a debate question and asks readers to respond. A recent issue of this magazine asked the question “Is civility dead?” Interestingly, 71% of the respondents answered YES. It appears that the vast majority of people (who read the Costco Connection) believe that civility is indeed dead.

Obviously, this is not a scientific poll and needs to be taken with a grain of salt. But, I think it does say something about our U.S. society. Of course there are many caring, and giving, people all across the nation, but I think what is being considered here is the everyday experience of interacting with our rapidly changing narcissistic culture.

What do you think—is civility dead, or dying, in the U.S.?

• NBC paid $820 Million for the broadcast rights to the games—34% more than they paid for the rights to broadcast the 2006 games.

• The 2010 games are costing Canada $7.85 Billion, of which $1 Billion is for security alone. (What has happened to our world where so much security is needed for a “sporting” event? What is mankind becoming?)

• The most profitable Olympics were held in Los Angeles in 1984, with $464 Million (today’s dollars) profit.

• Rumors estimate the cost of the next winter games in Sochi, Russia at $33 Billion.

• The most expensive Olympics were held in Beijing in 2008 where they dropped a cool $40 Billion. (I imagine much of that expense was for facilities that did not exist prior to the games).

• The Royal Canadian Mint extracted gold, silver, and copper from 6.8 TONS of electronic trash headed for the landfill, to make 615 Olympic and 399 Paralympics medals.

• Today’s Olympic Gold Medals are 92.5% silver (the rest copper), covered with 6 grams of gold plating.

• The last all-gold medals were made for the winter Olympics in Stockholm—in 1912.

I hope these Winter Olympics are profitable for Canada, and I wish the best of luck to all the participants!

“Behind the storms of daily conflict, crisis and struggle, it is the artist, and the poet and the musician that continues the quiet work of the centuries, building bridges of experience between peoples, and reminding us the universality of our feelings, desires, and despairs, and reminding us that the forces that unite are deeper than those that divide.”

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HAPPY HOLIDAYS TO EVERYONE!

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It is well enough that people of this nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.

—Henry Ford

The banking and monetary system Henry Ford was referring to is the system that recently plunged our country into the worst recession since the 1930’s. Now, that same system is up to their old tricks again.

Paul Krugman wrote an OP-ED piece for the New York Times yesterday, and here is the first paragraph:

Americans are angry at Wall Street, and rightly so. First the financial industry plunged us into economic crisis, then it was bailed out at taxpayer expense. And now, with the economy still deeply depressed, the industry is paying itself gigantic bonuses. If you aren’t outraged, you haven’t been paying attention.

Please take the time to read Krugman’s article here.

The antics of Wall Street are currently constructing the exact same scenario that just required taxpayer bailouts. According to Krugman, Andrew J. Hall, of Citigroup (the bank currently propped up with $45 Billion of taxpayer money) is now owed $100 Million, according to his employment contract.

Why does any of this matter to the small-business person? First of all, because Wall Street is using taxpayer money (your money) as part of their operating capital—with no benefit to you or your business.

Secondly, it is small business that will rebuild our economy and put people back to work—not Wall Street. It will therefore fall on small business (and their employees) to pay the bills of government assistance to failing companies….and there is no end in sight.

Are we “…ready to face up to the fact that we’ve become a society in which the big bucks go to bad actors, a society that lavishly rewards those who make us poorer(?)” (Paul Krugman)

I would like to hear from anyone who agrees, or disagrees, with Krugman’s assessment of our current financial system.