end of a season*

This NY Times Op-ed by Roger Cohen eloquently touches upon the death of the myth that I wrote about in my last entry:

The leverage party’s over for the masters of the universe. Shed a tear. When you trade pieces of paper for other pieces of paper instead of trading them for real things, one day someone wakes up and realizes the paper’s worth nothing. And Lehman Brothers, after 158 years, has gone poof in the night.

We’re witnessing the passing of more than a venerable firm. We’re seeing the death of a culture.
…

So that’s what “financial killing” really means. No better illustration exists of a culture where private gain has eclipsed the public good, public service, even public decency, and where the cult of the individual has caused the commonwealth to wither.

That’s the culture we’ve lived with. It’s over now. Some new American beginning is needed.

…

When I taught a journalism course at Princeton a couple of years ago, I was captivated by the bright, curious minds in my class. But when I asked students what they wanted to do, the overwhelming answer was: “Oh, I guess I’ll end up in i-banking.”

It was not that they loved investment banking, or thought their purring brains would be best deployed on Wall Street poring over a balance sheet, it was the money and the fact everyone else was doing it.
…
But why do freshmen bursting to change the world morph into investment bankers?

“I guess the bottom line is the money. You could be going to grad school and paying for it, or earning six figures. And knowing nothing about money, you get to move hundreds of millions around! No wonder we’re in this mess: turns out the best and the brightest make the biggest and the worst.”

According to the Harvard Crimson, 39 percent of work-force-bound Harvard seniors this year are heading for consulting firms and financial sector companies (or were in June). That’s down from 47 percent — almost half the job-bound class — in 2007.

These numbers mirror a skewed culture. The best and the brightest should think again. Barack Obama put the issue this way at Wesleyan University in May: beware of the “poverty of ambition” in a culture of “the big house and the nice suits.”

I hope this humbling of Wall Street will make room for something more substantive to be built in its place.

*This is the second installment. The first one occurred about a year and a half ago.