SPEND $500 on two magnums of Veuve Clicquot Champagne at Bagatelle on West 13th Street in the meatpacking district, and the bottles are delivered to your table with lighted sparklers stuck in their corks. Spend $2,500 on a jeroboam of Veuve Clicquot and some magnums of Dom Pérignon, and the lights dim, the D.J. cues up the theme from “Superman,” and a waiter is hoisted onto the shoulders of his fellow servers. With a tablecloth knotted around his neck as a makeshift cape and his arms outstretched, he carries one of the blazing bottles of bubbly to your table. As the waiter soars through the air, he does so against a backdrop of patrons fist-pumping Champagne flutes, flashing cameras capturing pictures ripe for Facebook and a dozen young women clad in sequins, stilettos and Chanel bags climbing onto chairs, banquettes, even tables -- any elevated surface that is sturdy enough to dance on….
[I]t is not Friday night. It is 3:30 Saturday afternoon. Champagne corks are always popping somewhere, of course, and the high life never disappears entirely, especially in New York. But these days, a $750 magnum of Perrier-Jouët stands in striking contrast to the scene outside Bagatelle’s glass-paneled door, where the Dow has lost half its value since the fall of 2007, the recession has claimed a net total of 4.4 million jobs since it began, more than 850,000 families lost their homes to foreclosure last year, and the word “depression” is being heard in the land....
“It’s like, ‘What recession?’ ” said Ms. Brodish, who lives in TriBeCa and was dressed this afternoon in a glittery top paired with skinny black pants. “Look around. Do you see a recession?” ...
A man who works in finance and was standing near the bar of Merkato 55…. As for how he and his fellow Wall Streeters could still afford such afternoons, he said: “We all made so much money in the past five years, it doesn’t matter.”
A 29-year-old man who works for a large investment management firm and was at Bagatelle’s brunch one recent Saturday and at Merkato 55’s the next, put it another way: “If you’d asked me in October, I’d say it’d be a different situation, and I don’t think I’d be here. Then the government gave us $10 billion.”
Using Technology to Deepen Democracy, Using Democracy to Ensure Technology Benefits Us All
Monday, March 16, 2009
Lifestyles of the New Welfare Recipients
[via NYT]
I always think about Bill Maher's "Bring Back the Guillotine" routine when I hear stuff like this.
ReplyDeleteWell,at least the bottle service girls where I work suffer only the common indignities of the cocktail waitress without the extra theatrics.
> A 29-year-old man who works for a large investment
ReplyDelete> management firm and was at Bagatelle’s brunch one
> recent Saturday and at Merkato 55’s the next, put
> it another way: “If you’d asked me in October, I’d
> say it’d be a different situation, and I don’t think
> I’d be here. Then the government gave us $10 billion.”
From _Without Conscience: The Disturbing World of the
Psychopaths Among Us_ by Robert D. Hare (1993)
http://www.amazon.com/Without-Conscience-Disturbing-World-Psychopaths/dp/1572304510
Chapter 7, "White-Collar Psychopaths"
--------------------------------
In July, 1987, in response to an article that appeared in
_The New York Times_ summarizing my work on psychopathy,
I received a letter from Assistant District Attorney. . .
Brian Rosner of New York. He wrote that he had recently
spoken at a sentencing hearing of a man who had been
convicted of a multimillion-dollar international bank
fraud. . .
This letter was accompanied by a package of materials describing
the exploits of thirty-six-year-old John Grambling, Jr., who,
with the help of a cohort, defrauded not one or two but
many banks into freely and confidently handing over millions of
dollars, although the two had no collarteral whatsoever.
An article in the _Wall Street Journal_ describing Grambling's
career of fraud was headlined this way: BORROWING MILLIONS WITHOUT
COLLATERAL TAKES INGENUITY, BUT JOHN GRAMBLING KNOWS HOW TO
APPEAL TO BANKS AND HOW TO FAKE ASSETS.
. . .
The scams rested almost completely on appearances. Between them,
Grambling and his associate were able to convince a long line of
officials in many lending institutions that they were men to be
trusted. In fact, the two finessed an impressive credit rating,
repaying one loan by floating another, and so on down the line.
In searching for an explanation of how such swindles occur,
the _Journal_ writer elicited these reactions from bankers:
-- Banks are highly competitive in trying to place good loans.
-- Grambling's "very nice social graces" gave him credibility.
-- A person intent upon fraud "is going to get it done".
. . .
As the court transcripts and other legal papers in the package
sent to me attest, Grambling makes his living by using charm, deceit,
and manipulation to gain the confidence of his victims. . .
At the very least, the story is a graphic morality tale about a
breed of predators whose charming demeanor and anemic conscience
grease the way for fleecing institutions and people -- for what is
euphemistically called white-collar crime. They have charming
smiles on their faces and a trustworthy tone to their voices, but
never -- and this is a guarantee -- do they wear warning bells
around their necks. . .
They often manage to avoid prison, and even if caught and convicted
they usually receive a light sentence and an early parole, only to
continue where they left off.
Yet, their crimes have a devastating impact on society. Consider the
following comments about Grambling, made by ADA Brian Rosner
during the sentencing hearing:
-- The crimes of Grambling are calculated crimes of greed, driven by
a lust to exercise power over the lives and fortunes of others.
It is a lust often seen in the most vicious criminal . . . The work
of a man of incalculable evil.
-- He has littered this nation with broken careers and aspirations.
The monetary destruction he has caused can be calculated. The human
suffering and psychological damage cannot.
-- Though his tools are genteel, his instincts are as savage as the
street brute.
In addition to bilking financial institutions, Grambling used the
stationery of a prestigious accounting firm to forge financial statements
that enabled him to get loans. At the same time, he conned the senior
member of the firm -- a philanthropy consultant -- and his colleague
into helping him establish a fraudulent charity for the elderly. To
these two men, said Rosner, "Grambling is simply the smoothest con
man they have ever met."
> Charming people live up to the very edge of their charm, and behave
> just as outrageously as the world allows.
>
> -- Logan Pearsall Smith, _Afterthoughts_, p. 3
. . .
His father-in-law wrote that Grambling expressed regret for his past
errors, talked of his therapy, his "100% rehabilitation," and plans for
making up for his sins, "all **while he was on his way to rip off another
bank.**" While free on his own recognizance Grambling committed additional
frauds, engaging in a "coast-to-coast crime wave." His expression of
remorse were belied by his conduct.
And what did Grambling have to say about all this? Quite a bit, as it
turns out. Some of his comments are revealing and worth presenting here
as an example of a characteristic typically found in psychopaths: facile
distortions of reality even when they **know** that others are aware of
the facts. . .
-- I have developed through my training in finance into a financial
architect. I am a builder. I am not a professional "con-man" or "scam-artist".
-- I never had a legal problem in any job I held prior to 1983, be it
related to finance or any other field.
-- I am a very feeling person.
As Grambling was well aware, his statements did not square with the facts
available to the court. He **was** a "scam artist," he **did** have legal
problems before 1983, and, by all reports, he was **not** a "feeling
person" in the normal sense of the term. . . As a university student in
the early 1970s he embezzled several thousand dollars from his fraternity.
Wishing to avoid a scandal, the fraternity accepted a check from Grambling's
father and did not press charges.
In Grambling's first job, in a major investment banking house, his employer
considered him a "professional incompetent," and he was "encouraged" to
leave. In a subsequent financial job he misrepresented the position he
held and cheated the firm. Grambling was permitted to resign and went into
business for himself as a forger and a thief. . .
One friend [of Grambling's wife]. . . told her he could not understand
why Grambling's sentence was so high for "just a white-collar crime."
. . .
Grambling's ability to rationalize his behavior is typical of the attitude
that psychopaths have toward their victims. In addition to his wish
to be "liked by everyone," his euphemistic view of himself as a "financial
architect," and his "fear of losing face," he considered his crimes logical
responses to frustration and pressure, or more the victim's fault than
his own. "In Grambling's mind, anyone who is stupid enough to trust or
believe him deserves the consequences," said Rosner. . .
Rich Feeding Grounds
There is no shortage of opportunities for white-collar psychopaths who
think big. The business pages of every major newspaper routinely contain
reports of investigations into shady money-making schemes and deals
concocted and operated by con artists and scam masters. These reports
cover only a small number of the thousands of lucrative opportunities
that exist for a fast-talking psychopath with a head for numbers and
the social skills to move easily in financial circles. For these individuals,
the potential for profit is so enormous, the rules so flexible, and
the watchdogs so sleepy that they must feel that they have found paradise. . .
-- An article in _Forbes_ headed SCAM CAPITAL OF THE WORLD described the
Vancouver Stock Exchange as "infested with crooked promoters, sons of
crooked promoters and sons of friends of crooked promoters." Local
newspapers continually reports a litany of scams, swindles, phony stock
promotions, and blatant hype designed to boost share price on the Exchange.
Penalties for being caught are often laughable, and they certainly do
little to dampen the wild and voracious scheming. If I were unable to
study psychopaths in prison, the next choice would very likely be a place
like the Vancouver Stock Exchange.
-- In the late 1980s, the lid blew off a decade's worth of rotten investments,
phony promises, fraudulent business practices, and voracious greed in the
United States savings and loan (S & L) business, which President Reagan
had deregulated in the early 1980s. Without the pressure to conform to
the rules under strict governmental oversight, certain S & L personnel
began to take freedoms with their depositors' money that led, in a gradually
building avalanche of debt, to a financial disater of unprecedented
proportions. At the time of this writing, the projected cost to U.S.
taxpayers of what has become known as the S & L bail-out approaches
$1 **trillion** -- more than the entire cost of the Vietnam War.
-- Incredible as it seems, even the S & L scandals have been topped by
recent revelations of a worldwide network of unbelievable greed and
corruption. "Nothing in the history of modern financial scandals rivals
the unfolding saga of the bank of Credit and Commerce International,
the $20 billion rogue empire that regulators in 62 countries shut down. . .
in a stunning global sweep. Never has a scandal involved so much
money, so many nations, and so many prominent people. . . Superlatives
are quickly exhausted: it is the largest corporate criminal enterprise
ever. . . the most pervasive money-laundering operation and financial
supermarket ever created.
> At this writing, the mysterious death of publishing czar Robert Maxwell
> has opened an enormous can of worms. Maxwell's business empire collapsed
> amid charges that hundreds of millions of dollars were illegally
> siphoned off. The case is relevant here as a good example of how a
> carefully managed public persona can conceal dark deeds and a black
> heart.
>
> Although it was widely known that he was a crook and a charlatan who was
> adept at moving money from one company to another, most of those who
> knew him, including journalists, managed to keep remarkably silent.
> Maxwell had a great deal of power and was able to intimidate his
> critics. He also benefitted from the "unscrupulousness of greed" and
> and establishment that turns a blind eye toward "unconvicted money-making
> crooks" (Quotes are from an article by Peter Jenkins, "Captain Bob
> Revealed: A Crook and a Conspiracy of Silence." _Independent News Service_,
> December 7, 1991.)
They've Got What It Takes
It is not difficult to see why psychopaths are so attracted and so successful
at white-collar crime. First, lots of juicy opportunities present
themselves. As one of our subjects, convicted of selling forged corporate
bonds, put it, "I wouldn't be in prison if there weren't so many cookie
jars just begging me to put my hand in." His cookie jars were pension funds,
boiler-room stock promotions, charity fund-raising drives, and shared-vacation
condo schemes, only a few of the many well-furnished niches that allow
those of his ilk to operate unobtrusively.
Second, psychopaths have what it takes to defraud and bilk others: They are
fast-talking, charming, self-assured, at ease in social situations, cool
under pressure, unfazed by the possibility of being found out, and totally
ruthless. And even when exposed, they can carry on as if nothing has
happened, often leaving their accusers bewildered and uncertain about their
own positions.
Finally, white-collar crime is lucrative, the chances of getting caught are
minimal, and the penalties are often trivial. Think of the insider traders,
junk-bond kings, and S & L sharks whose financial depredations were so
spectacularly rewarding -- even when they were caught. In many cases, the
rules of the game for greed and fraud carried out on a grand scale are not
the same as they are for ordinary crime. Often, the players in the former
form a loosely-structured network to protect their mutual interests: They
come from the same social strata and the same schools, belong to the same
clubs, and may even be instrumental in setting up the rules in the first
place. A bank robber may be sentenced to twenty years in prison, whereas
a lawyer, businessperson, or politician who defrauds the public out of
millions of dollars may receive a fine or a suspended sentence, usually after
a trial marked by long delays, adjournments, and obscure legal maneuvers.
We condemn and shun the bank robber but ask the embezzler to help us invest
our money or join our tennis clubs.