Given our society these days, should we really be surprised by crusading Governor Eliot Spitzer's prostitution scandal? These days it seems like all our heroes let us down, whether they be superstar athletes like Roger Clemens (steroids) and Michael Vick (animal cruelty), widely held technology stocks like Google (NASDAQ: GOOG) (less clicking, 40% drop in stock price) and Apple (NASDAQ: AAPL) (imperfect, 40% drop in stock price) and once-pillars of the finance industry Merrill Lynch (NYSE: MER), Citigroup (NYSE: C) and Bear Sterns (NYSE: BSC) (all had too much exposure to subprime mortgages and municipal bonds). Mind you, in no way do I condone Spitzer's behavior -- the night before Valentine's Day no less -- but in the grand scheme of things, he's done a whole lot more good than he's done bad. You might even say it takes a criminal to know one! He'll probably be forced to resign and while sad, it should motivate him like never before to gain back the respect he once had.
For all the value and integrity we place on sports, it's really nothing more than entertainment. In no way can I defend Vick, but Clemens clearly loves his sport and simply could not let anything stop him from being the best. While it's sad that his career will be forever marred, it's a great lesson to teach kids to never cheat -- no matter what.
As for the companies -- well, Google really hasn't done anything wrong, but the vast majority of its business is based on billions of people clicking their ugly little ads. It was inevitable that it'd go through tough times. But it's good for us, because it'll force those nerds to work harder to come up with something cool that will once again change our lives, maybe the Google Phone.
Apple missed expectations, but those expectations were inhuman -- too much cheerleading and not enough caution, as I noted back in early January. You have to believe this kind of stock drop irks the obsessive Steve Jobs -- good! No more time off, back to 20-hour days like back in the 1980s!
And financial firms -- greedy as ever, determined to beat their competitors -- made a very common mistake by leveraging up on illiquid assets, and now they're paying the price. Agonizing and potentially disastrous in the short run, but just painful enough to be enlightening in the long run.
As I detail in my book, contrary to popular belief, letdowns and losses aren't the end of the world. Mistakes are not the enemy, they actually motivate us to learn and better ourselves. Forget whatever it is you're feeling right now and look to the future, this kind of grounding -- helping us realize we're all just human -- is what need.
Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund.
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Reader Comments (Page 1 of 1)
3-10-2008 @ 7:15PM
kell193 said...
hold on... which side of the isle is he on? Oh, that's right, so never mind this last news item... he's just doing what it is they do....
3-10-2008 @ 7:22PM
kell193 said...
Hold on, which side of the isle is he on? Oh, I remember now, so, never mind the last news item, he's just doing what they do best.
3-11-2008 @ 12:35AM
James said...
What an enlightening article! You know, I never thought of weighing the pros and cons when it comes to the governor. he swore to uphold the law, but I guess that just applies to everybody else, not him. Now that I think about it, Richard Nixon did a lot of good too...did he need to resign based on your thinking? Liberal press defending liberals...sorry - Nixon was a republican - so I guess the same philosophy doesnt apply...
3-11-2008 @ 10:44AM
The_Village_Idiot said...
...."he's done a whole lot more good than he's done bad"
Timmy, are you serious? Tell that to the shareholders & employees of Marsh & Mac and AIG (and the other targets of his over-stepping justice aimed to further his own political career).
Spitzer proved to be a real creep. If he simply had an affair, the public/media would forgive him (as he's only human). However, he of all people, showing such indifference to the law is apalling. I say lock him (and his dumbo handle-bar ears) in the slammer.
Gotta love the hypocrites..... add his buddy Cramer to that list. Did you hear his nonsensicle (he's my friend) comments made on Mad Money last night? This is the same clown who shamelessly humiliates CEO's on his "Wall of Shame" yet gives the "get out of jail card" freely to his buddies (first Lampert & now Spitzer). Another total hypocrite.
3-11-2008 @ 11:10AM
Pat King said...
My mother taught me that "Sauce for the goose is sauce for the gander." If Mr. Spitzer indeed broke the law he should resign immediately for the good of the people of New York. If he is convicted of having committed a felony he cannot remain in office any way.
When are politicians going to learn there is no privacy in this country? Anything they say or do is, sooner or later, going to wind up on the front page. Since telephone conversations are monitored by the government, emails can be read by any one, and, who knows, perhaps the government also reads our snail mail whenever it wants to, privacy is a forgotten right.
The rule I have suggested to my grandchildren is to never do anything you wouldn't want your grandmother to read about in a headline.
3-11-2008 @ 1:41PM
charlie said...
The article says refers to seems like ALL "our hero's " are letting us down? Excuse me but some over paid ball player i have never met is not my hero. Some tv personality is not where i get my inspiration and strength. Opra or someother paid talking head is not who i look to for inspiration.
This guy Spritzer by most accounts was an arrogant, self centered ass that had a different set of rules for himself and had the nerve to prosecute others for doing things he found acceptabel for himself. Oh and by -the -way he was not my hero either.
3-12-2008 @ 1:15AM
james said...
Charlie and most others hit it on the head! Never justify a man who has asked to lead a State and prosecute lawbreakers, as only human, when he falls. No sir! Their are many ''humans'' who actually LIVE a respectful life. To justify Spitzer is justifying the worst part of our nature......SIN! If he repents......good for him......It is not for us to forgive........it's his familie's decision. YEah, he did some good things.......so did the worst of the worst of humans. HE asked to serve...he was elected.....HE BETRAYED THE MOTHERS AND DAUGHTERS OF NY and USED A ANOTHER"S CHILD FOR HIS PLEASURE, being marrried! Wonder what he would do if someone did the same to his OWN???> Arrest him and try him for the exact same thing he charged others with....Remove him from office NOW......forcibly if neccesary.......IF that were YOU or me or my son or daughter......WE WOULD BE IN JAIL!!! Cramer.......supports Hillary.........Nuff said.... Between Obama and Hillary you get NOTHING!
3-12-2008 @ 12:38PM
gumby said...
Stop contributing toyour 401K plans now.... Save for your house mortgage.... Your home is more important than 401K plans, right?? Protect your home now.. Remember you cant touch 401K money until you are at ripe ol' age of 59 and half...... Your home will be lost before then, right?? First things first,, right?? Screw stock market for now and buy at cheaper prices much later.....