• Dr. John E. Charalambakis is the Chief Economist at Blacksummit Financial Group, Inc. Lexington, Kentucky. He is also with the Adjunct Faculty at Patterson School of Diplomacy, University of Kentucky.

This article is contributed by the author for publication in the Business Thinker. It has also been published by the Blacksummit Financial Group Blog.

The unfolding events – by the hour – in Cyprus shine light to a historical precedent: When the next crisis comes around bank deposits may not be spared. This is presented to the public as a “just” decision due to the Cypriot “banking sins”. We will be exploring justice issues in this commentary, but before doing so, shouldn’t we be asking why such justice was not also applied to the banking sins uncovered during the 2008-’09 crisis? Why did we choose to bailout with trillions of dollars all those banks in Germany, France, England, Ireland, Switzerland, US, Spain, Italy, Belgium, Holland, etc., that seem to have created the financial catastrophe? (See pertinent tables with the amounts at the end of this commentary). And, if we couldn’t afford to do so back then, why don’t we break them now?

In Plato’s Republic we find Socrates asking the fundamental question that has been with us for centuries, “What is justice?” It seems that for Plato, as well as for Aristotle who followed him, justice is the essential virtue of a society. Socrates taught his disciples that justice is giving and getting one’s due. Plato describes that justice must be counted as desirable for its own sake. Justice in other words is harmony in the soul and harmony in the state. Furthermore, Plato tells us that responsibility should be delegated in accordance to one’s ability and place. I believe that nowadays, the latter should be the foundation for viewing international decisions regarding bailouts and bailins (where depositors lose a good chunk of their savings).

In this framework of thought, justice is viewed as fairness, power is restrained, and the interests of the society as a whole are being advanced. If that is the case, then, sectors in the economy would work together in harmony (nowadays that would apply to the production and financial sectors), while convergence would be observed across nations through the creation and sustainment of middle classes. However, the unfortunate result these days is the divergence of financial interests from the production sector, increased instability (economic, political, social, and financial), and the destruction of middle classes across nations. When the financial interests of collateralization and securitization, are separated from production interests at a global level, then Pandora’s jar is being opened, financial crises take place, and the reverse route starts i.e. the destruction of the middle class and injustice prevails.

Ms. Arianna Huffington is the President

and Editor-in-Chief at The Huffington Post Media Group

Ms. Huffington wrote and published a very relevant and timely article on Business and the cost of stress that the personnel of a business goes through. We consider it important to make it available to our readers. This article was published in Linkedin.com om March 21, 2013

………….Even a quick look at what’s happening in the American workplace shows that it’s a seriously split-screen world. On the one hand, there’s the stressful world of quarterly earnings reports, beating growth expectations, hard-charging CEOs, and focusing on the bottom line — the world that is the usual focus of CNBC and Squawk Box. On the other hand, there’s the world populated by the growing awareness of the costs of stress, not just in the health and well-being of business leaders and employees, but on the bottom line as well.

There is a growing body of scientific evidence that shows that these two worlds are, in fact, very much aligned — or at least that they can, and should, be. And that when we treat them as separate, there is a heavy price to pay — both for individuals and companies. The former in terms of health and happiness, and the latter in terms of dollars and cents. So yes, I do want to talk about maximizing profits and beating expectations — by emphasizing the notion that what’s good for us as individuals is also good for corporate America’s bottom line. To do that, I’ll be featuring guests who have had great success at bringing these two worlds together and putting what at first might seem like abstract or esoteric concepts to very productive use in the workplace.

When we separate these two worlds, the costs come in two forms. First, there are the direct costs due to stress and its associated medical conditions, and, second, there’s the cost of lost creativity and diminished performance and productivity.

According to the World Health Organization, the cost of stress to American businesses is as high as $300 billion. And unless we change course, this will only get worse. Over the last 30 years, self-reported levels of stress have increased 18 percent for women and 25 percent for men.

Dr. Periklis Gogas is a frequent contributor to The Business Thinker magazine. He is an Assistant Professor of Economic Analysis and international Economics, Department of International Economics and Development, Democritus University of Thrace, Greece

Dr. Ioannis Pragidis is a co-author for the Business Thinker magazine. He is a Lecturer of Economic Analysis at the Department of Business Administration, Democritus University of Thrace, Greece

Towards Consolidation
After the crisis of 2008, governments and investors have been looking forward to the next day. After four years of fighting hard to restore liquidity in the global system, we face the difficulties arising from the slow growth of the real economy in almost all developed countries. The financial analysis of the Eurozone crisis gives way to the need to develop and implement a long-term economic policy. After 11 years of the euro crisis and with strong data in hand, we can factor in a satisfactory degree of certainty with some useful conclusions on the functioning of the euro area economy. In addition, the zone’s future now perhaps for the first time since the outbreak of the crisis is expected to be less dark and uncertain.

Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Distinguished Visiting Fellow at the Institute of Advanced Studies in the Humanities, University of Edinburgh, Scotland, publisher of www.GavdosPress.com. Founder and former CEO, Industries, Inc., a Fortune 500 industrial corporation

The linkages listed in this segment and following segments on this topic to be posted in separate categories are based on my experience as senior executive as well as an entrepreneur on managing growth businesses. Because statistical techniques test for probabilities but not certainties, the wordings are stated in terms of likelihoods. Discussions of these linkages are to be presented in future articles. Other executives and entrepreneurs could come to different conclusions compared to those listed in the segments posted. Therefore, those that read my views should take them as the experience of one person and use their judgment as to whether these linkages are to be taken as stated in their case.

Linkage 7-1: The more adequate the information that a CEO obtains from inside the firm, the more adequately authority is distributed, and the more effectively roles are assigned, then the more profitable the firm is likely to be.

Linkage 7-2: The more widely information is shared among employees, and the more effectively roles are assigned, the more rapid sales growth is likely to be.

Linkage 7-3: The more adequate is the information obtained by the CEO inside the firm and the more effectively roles are assigned, then the more effective direction-setting strategy is likely to be.

Linkage 7-4: The more widely information is shared inside the firm, the more able the firm is likely to be to obtain needed outside information, recruits, suppliers, subcontractors and capital and the more effective the CEO’s recruitment strategy is likely to be.

Linkage 7-5: The more adequate is the information obtained by the CEO and the more effectively roles are assigned, the more effective the management recruitment strategy and the more adequate outside information are likely to be.