Pump and dump: Leonardo DiCaprio as stockbroker Jordan Belfort in The Wolf of Wall Street.
Everybody likes to win. Everybody wants to root for a winner, especially an underdog. Losing sucks. Although it is a necessary part of life, we all prefer to win. The world we live in is centered on winners. This might be deeply hardwired into our psyche to survive. Darwin could have been an economist. After all, in a dog-eat-dog world isn’t it survival of the fittest? Welcome to the jungle.
The Wolf of Wall Street is based on the true story of Jordan Belfort. Jordan is your epitome of a smooth-talking Wall Street “pump and dump” shyster who is incredibly talented but destined for a massive fail at the end.
In true sex, drugs and rock-’n’-roll (money) fashion, we have an extreme example of how human wants and needs can drive us towards criminal enterprise. The criminal mind can often justify the activity as free enterprise, or, in Jordan’s words, “This is America.” Wealth can fuel the morally bankrupt. After all, who wouldn’t want a 170-foot yacht, a chopper, a palatial house, two vacation homes, sports cars, a trophy wife, a mob of minions and sycophants and almost US$1 million/week in cash flow and orgies the Romans could only have dreamed of?
Unfortunately for Jordan, the law of gravity prevails at the end. It all comes crashing down and you almost feel bad for the guy. There are some real lessons and insights that come out of this movie.
We need to understand the crux of the issue: greed is an integral part of human nature. Buddhists describe this as attachment to worldly desires. Perhaps only a true ascetic can detach himself from want and greed. The nature of greed is amplified when surrounded by enablers, and currency is the ultimate enabler. The world would have been a much simpler place if we had kept the barter system and banned the use of a common currency. Greed would somewhat be tempered by physical limitations. Once you open Pandora’s box, though, you can’t shut it. In a world where money talks and BS walks, regulation plays an important role in tempering society.
We have seen history repeat itself over and over again: Michael Milken, Nicolas Leeson, Jordan Belfort, Raj Rajaratnam, etc. — all very talented individuals who pushed the envelope and disregarded some fundamental rules for what they believed was their right to milk the system. There will undoubtedly be many more. The reality is regulators can only catch and make an example of a few. Hundreds, if not thousands, of similar crimes on a smaller scale continue unchecked. On a grander scale you have the sub-prime and CDO(s). I’m not sure if you share my view, but perhaps the biggest debacle leading to the global financial crises could have been the perfect crime.
Lifestyle Feature ( Article MRec ), pagematch: 1, sectionmatch:
Us Filipinos don’t have to look too far. Our own political system is affected by the same issue. The recent exposés on PDAF and the misuse of government funds is a clear testament to the fact that this kurakot is blatantly practiced in our country. Despite all the talk and funding that goes to battling corruption, we know that this battle will never be won but must always be fought. You can’t eliminate human greed, you can only control it and regulate it. In an environment where there is poor enforcement, criminal activity and corruption will thrive. It may sometimes become the standard by which one operates. The wheels need to be greased in order to move. This is the unfortunate reality of most third-world countries.
This all raises the question of how does one survive in a crocodile pit? How do you excel in the jungle and swim with the sharks without losing your moral compass? I will leave you with a quote from the Bible so that you may derive your own answers: “Behold, I send you forth as sheep in the midst of wolves: be ye therefore wise as serpents, and harmless as doves.”
