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  • 1.  thinking a lot about the global financial crisis

    Posted 10-14-2008 10:54

    Probably much like you, I have been thinking a lot about the global financial crisis.  I got my retirement fund report last week.  So when was I planning to retire?

     

    It seems to me that the global financial crisis involves institutions who rather than operate a sustainable system created a house of cards the fall of which we will all likely suffer for years to come.  Instead of hard work financial institutions have operated a gimmick packed shell game they thought they were smart enough to control.  They thought they could borrow money from people who did not have it to lend and lend money to people who could not afford to pay it back.  Experience proved them wrong. 

     

    The wisdom of these actions is questionable from a variety of perspectives.  Certainly the financial experts, regulators, politicians and the news media are busy pointing fingers.  But how do we avoid these situations in the future?

     

    As an educator, it seems a common denominator in all this is the education both those who work in the financial industry and our politicians on both sides of the aisle received at university.  Indeed, one might well question the training of those who run the financial institutions.  These institutions aggressively recruited graduates of the best universities.  Graduates have often been encouraged to believe that the goal is to ensure their bonuses by increasing earnings by these institutions as much as possible regardless of the means.  Alumni working for these institutions have also used their financial contributions to influence their alma mater's policies and practices.

     

    In order to avoid these crises in future we might ask ourselves, how many of our graduates work in these institutions?

     

    What is it that they were taught or not taught?

     

    What is it that they learned or failed to learn?

     

    What lessons do universities, faculty need to learn from this crisis to help future graduates learn not to let this happen again?

     

    What is the role of agencies accrediting universities and academic programs?

     

    What is the role of our teaching, research, and service?

     

    Faculty have the opportunity to apply their scholarly activities to help solve problems that face the larger community beyond the boundaries of campus, to integrate student learning with the scholarship of engagement, to advance the pedagogy, as well as, to investigate issues of interest within and across academic disciplines. 

     

    How might that scholarship better prepare our graduates to ensure that playing with cards is understood as a game and not a way to manage financial institutions?

     

    What do you think?

     

    Cheers,

    Chris

     

     

    Dr. Christopher Pratt

    Associate Dean for Academic Affairs

    Professor of Business Administration

    Senior Policy Fellow, Institute for the Economy and the Future

    College of Business Western Carolina University http://www.wcu.edu/2517.asp

    282 Belk Building Cullowhee, NC 28723 cgpratt@wcu.edu

    Office: +828-227-3498  Fax: +828-227-7075              

    Cell: +828-450-5692  BB Mobile: +828-545-7028

     

    ************************************** This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management. Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list. You can manage your subscription options, including joining or leaving the list here: http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1 If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu. Ventures HO!


  • 2.  thinking a lot about the global financial crisis

    Posted 10-15-2008 18:24

    I concur - these are important questions to answer. Keeping our education relevant and effective requires some introspection.

     

    I feel that we need to teach students the need for balance; a balance between regulation and free enterprise, between rights and duties, between insight and foresight. This may be especially the case in regions where conservative viewpoints abound, like Indiana, where there are highly entrenched values and beliefs.

     

    Do you think that we would all benefit from a special issue on this topic?

     

    Cheers 

    Bill

     

    Dr. Želimir William Todorovic
    Division Chair, Entrepreneurship and Family Division
    Administrative Sciences Association of Canada

    Richard T. Doermer School of Business and Management
    Indiana - Purdue University, Fort Wayne
    2101 E. Coliseum Blvd.
    Fort Wayne, Indiana, 46805-1499
    Web:http://users.ipfw.edu/todorovz/
    e-mail: todorovz@ipfw.edu
    (260) 481 6940

    ----- Original Message -----
    Sent: Tuesday, October 14, 2008 10:53 AM
    Subject: [ENTREP] thinking a lot about the global financial crisis

    Probably much like you, I have been thinking a lot about the global financial crisis.  I got my retirement fund report last week.  So when was I planning to retire?

     

    It seems to me that the global financial crisis involves institutions who rather than operate a sustainable system created a house of cards the fall of which we will all likely suffer for years to come.  Instead of hard work financial institutions have operated a gimmick packed shell game they thought they were smart enough to control.  They thought they could borrow money from people who did not have it to lend and lend money to people who could not afford to pay it back.  Experience proved them wrong. 

     

    The wisdom of these actions is questionable from a variety of perspectives.  Certainly the financial experts, regulators, politicians and the news media are busy pointing fingers.  But how do we avoid these situations in the future?

     

    As an educator, it seems a common denominator in all this is the education both those who work in the financial industry and our politicians on both sides of the aisle received at university.  Indeed, one might well question the training of those who run the financial institutions.  These institutions aggressively recruited graduates of the best universities.  Graduates have often been encouraged to believe that the goal is to ensure their bonuses by increasing earnings by these institutions as much as possible regardless of the means.  Alumni working for these institutions have also used their financial contributions to influence their alma mater's policies and practices.

     

    In order to avoid these crises in future we might ask ourselves, how many of our graduates work in these institutions?

     

    What is it that they were taught or not taught?

     

    What is it that they learned or failed to learn?

     

    What lessons do universities, faculty need to learn from this crisis to help future graduates learn not to let this happen again?

     

    What is the role of agencies accrediting universities and academic programs?

     

    What is the role of our teaching, research, and service?

     

    Faculty have the opportunity to apply their scholarly activities to help solve problems that face the larger community beyond the boundaries of campus, to integrate student learning with the scholarship of engagement, to advance the pedagogy, as well as, to investigate issues of interest within and across academic disciplines. 

     

    How might that scholarship better prepare our graduates to ensure that playing with cards is understood as a game and not a way to manage financial institutions?

     

    What do you think?

     

    Cheers,

    Chris

     

     

    Dr. Christopher Pratt

    Associate Dean for Academic Affairs

    Professor of Business Administration

    Senior Policy Fellow, Institute for the Economy and the Future

    College of Business Western Carolina University http://www.wcu.edu/2517.asp

    282 Belk Building Cullowhee, NC 28723 cgpratt@wcu.edu

    Office: +828-227-3498  Fax: +828-227-7075              

    Cell: +828-450-5692  BB Mobile: +828-545-7028

     

    ************************************** This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management. Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list. You can manage your subscription options, including joining or leaving the list here: http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1 If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu. Ventures HO!
    ************************************** This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management. Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list. You can manage your subscription options, including joining or leaving the list here: http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1 If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu. Ventures HO!


  • 3.  thinking a lot about the global financial crisis

    Posted 10-17-2008 03:24
    I second Bill's comments.
    Deregulation laws do not make bad people. Bad people do bad things regardless  of the law. Too many federal rules are now built on zero trust in people. It is stifling innovation.
     
    One aspect that seems to be lacking is, if the reports are accurate, several years ago some people raised the questions about a few people may be ripping off the system. Yet, nothing happened?  How do we deal with the political process that doesn't seem to focus all the time on the community good? Isn't it part of the oversight of the Congress committee roles vs setting up new government bureaucracies? They even call themselves "oversight" committees!
     
    In industry one thing I wouldn't tolerate and clearly didn't reward is the person when something goes wrong says "I could have told you so." Seems to fit many politicians.
     
    The pork barrel practice that is being dismissed as "as only a few billion dollars" reflects some of this same expediency culture. Or, if you will approve mine I will approve yours.
     
    interesting to use today's world to see how  our current generation of students will respond as this  global crisis unfolds. What role can innovation play in going forward?
     
    Bob
    Robert N. Beck
    Naval Postgraduate School
    (P) 831.656.2029 (Fax) 831.656.7633
     


    From: Entrepreneurship Division Listserv [mailto:ENTREP@AOMLISTS.PACE.EDU] On Behalf Of Bill Todorovic, IPFW
    Sent: Wednesday, October 15, 2008 3:24 PM
    To: ENTREP@AOMLISTS.PACE.EDU
    Subject: Re: [ENTREP] thinking a lot about the global financial crisis

    I concur - these are important questions to answer. Keeping our education relevant and effective requires some introspection.

     

    I feel that we need to teach students the need for balance; a balance between regulation and free enterprise, between rights and duties, between insight and foresight. This may be especially the case in regions where conservative viewpoints abound, like Indiana, where there are highly entrenched values and beliefs.

     

    Do you think that we would all benefit from a special issue on this topic?

     

    Cheers 

    Bill

     

    Dr. Želimir William Todorovic
    Division Chair, Entrepreneurship and Family Division
    Administrative Sciences Association of Canada

    Richard T. Doermer School of Business and Management
    Indiana - Purdue University, Fort Wayne
    2101 E. Coliseum Blvd.
    Fort Wayne, Indiana, 46805-1499
    Web:http://users.ipfw.edu/todorovz/
    e-mail: todorovz@ipfw.edu
    (260) 481 6940

    ----- Original Message -----
    Sent: Tuesday, October 14, 2008 10:53 AM
    Subject: [ENTREP] thinking a lot about the global financial crisis

    Probably much like you, I have been thinking a lot about the global financial crisis.  I got my retirement fund report last week.  So when was I planning to retire?

     

    It seems to me that the global financial crisis involves institutions who rather than operate a sustainable system created a house of cards the fall of which we will all likely suffer for years to come.  Instead of hard work financial institutions have operated a gimmick packed shell game they thought they were smart enough to control.  They thought they could borrow money from people who did not have it to lend and lend money to people who could not afford to pay it back.  Experience proved them wrong. 

     

    The wisdom of these actions is questionable from a variety of perspectives.  Certainly the financial experts, regulators, politicians and the news media are busy pointing fingers.  But how do we avoid these situations in the future?

     

    As an educator, it seems a common denominator in all this is the education both those who work in the financial industry and our politicians on both sides of the aisle received at university.  Indeed, one might well question the training of those who run the financial institutions.  These institutions aggressively recruited graduates of the best universities.  Graduates have often been encouraged to believe that the goal is to ensure their bonuses by increasing earnings by these institutions as much as possible regardless of the means.  Alumni working for these institutions have also used their financial contributions to influence their alma mater's policies and practices.

     

    In order to avoid these crises in future we might ask ourselves, how many of our graduates work in these institutions?

     

    What is it that they were taught or not taught?

     

    What is it that they learned or failed to learn?

     

    What lessons do universities, faculty need to learn from this crisis to help future graduates learn not to let this happen again?

     

    What is the role of agencies accrediting universities and academic programs?

     

    What is the role of our teaching, research, and service?

     

    Faculty have the opportunity to apply their scholarly activities to help solve problems that face the larger community beyond the boundaries of campus, to integrate student learning with the scholarship of engagement, to advance the pedagogy, as well as, to investigate issues of interest within and across academic disciplines. 

     

    How might that scholarship better prepare our graduates to ensure that playing with cards is understood as a game and not a way to manage financial institutions?

     

    What do you think?

     

    Cheers,

    Chris

     

     

    Dr. Christopher Pratt

    Associate Dean for Academic Affairs

    Professor of Business Administration

    Senior Policy Fellow, Institute for the Economy and the Future

    College of Business Western Carolina University http://www.wcu.edu/2517.asp

    282 Belk Building Cullowhee, NC 28723 cgpratt@wcu.edu

    Office: +828-227-3498  Fax: +828-227-7075              

    Cell: +828-450-5692  BB Mobile: +828-545-7028

     

    ************************************** This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management. Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list. You can manage your subscription options, including joining or leaving the list here: http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1 If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu. Ventures HO!
    ************************************** This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management. Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list. You can manage your subscription options, including joining or leaving the list here: http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1 If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu. Ventures HO!
    ************************************** This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management. Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list. You can manage your subscription options, including joining or leaving the list here: http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1 If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu. Ventures HO!


  • 4.  thinking a lot about the global financial crisis

    Posted 10-17-2008 19:49
    Thanks for the thread and suggestions, everyone.
    Suggesting PDW/special issue title: Beyond entrepreneurial opportunity

    In education, I am thinking of whether there is a parallel with student
    grade inflation... Any relationship with over-valuing assets? Any
    relationship with the exploding global funds flow to global goods & services
    trade ratio? Any relationship to opportunity for personal gain as the sole
    justification for (entrepreneurial/human) action in all settings?

    Yes we need debate and we need to question industry. We need to question
    ourselves.

    Looking forward to being in that PDW.
    Many thanks.


    Sanjay Bhowmick
    Management and International Business
    The University of Auckland Business School

    **************************************
    This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.

    Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.

    You can manage your subscription options, including joining or leaving the list here:
    http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1

    If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu.

    Ventures HO!