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Wall Street Kingpin Admits the Game is Rigged - YouTube
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[Music]
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before we get started i want to
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introduce to you
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two people now this is asher edelman
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when he was a corporate raider mounting
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unfriendly takeovers of companies using
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high-risk debt which was then known as
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junk bonds
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asher was one of the inspirations for
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the character of gordon
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gekko in oliver stone's 1987 film
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wall street greed for lack of a better
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word
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is good corporate raiders like asher
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edelman
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changed the face of american capitalism
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they also changed
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the structure of the american
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corporation
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they focused it on maximizing
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shareholder
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returns the raiders said that american
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management had become
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too fat and lazy and too entrenched and
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complacent
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which was why america was losing the
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competitive race
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in those days losing it to japan we used
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to say that our labor costs were so much
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over japan and germany's
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that we couldn't compete but in fact all
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in their labor costs are now higher than
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ours and why is it we can't compete we
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can't compete
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because they have entrepreneurial spirit
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and we're losing it
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now i said at the start that i wanted to
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introduce you to two people
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uh i still do you just met asher now
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let me introduce you to somebody else
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hard to believe i know but that was me
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and i disagreed with asher how do you
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respond to that argument professor rush
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well i don't know that it's an argument
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so much as an assertion
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those takeovers or the fears of
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takeovers do
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reduce management horizons that research
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and development
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drops that a lot of the increase in
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share values to the extent that there
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are any increases at all
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come simply because you're taking money
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from other stakeholders like employees
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and so forth
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by today's standards the debate was
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pretty civil
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if there's any casino game going on that
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is certainly a casino game
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your idea of a casino sometimes is my
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idea of a very efficient business sir mr
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edelman and professor reich
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thank you for both for joining us so was
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he right
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let me ask my guest today
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asher edelman 33 years after
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our debate asher with the advantage of
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hindsight
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were the unfriendly takeovers of the
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1980s good for america
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or were they bad net they were bad
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it wasn't only takeovers it was the
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greed in the banking system
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the change in the banking system and the
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ability to make people
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be or to allow people to refinance
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in ways that they put money in their
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pockets this kind of form of capitalism
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uh that began in the 1980s of which you
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were one of
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one of the major proponents maybe has
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not turned out
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quite well the 80s became the moment of
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change
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wall street which wasn't very clever in
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the 60s but became slightly more clever
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in the 70s and early
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80s became just a place of greed i left
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in 1988
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but it became a place of greed it became
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a place where
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the giuliani's of the world became a
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place where traders didn't study
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anything
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where they just went ah i'll take that
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and it became a place where
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uh where various instruments were rigged
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and you took you took three triple b
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pieces of paper and you put them
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together and you had a triple a piece of
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paper
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it was all nonsense asher edelman a
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titan of wall street
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saying things that many people would be
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surprised to hear
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from you after 33 years of us not having
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a conversation
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or at least not talking about these
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kinds of issues it's great
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to understand where you're coming from
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and it's terrific
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to have this conversation asher thank
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you
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talk to you soon and we all love you
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yo you take care bye bye ciao
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you
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