Financial Crisis Follow-up
December 5, 2008 12:12 pm integral theory<<Crossposted @ IntegralLife >>
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In looking at all those sub-prime mortgages and how complicated they are, as well as how dependent the system is on computers, etc., I would think the financial system is definitely at the orange level of development in cognitive function. However, in seeing how the system was administered toward short term gain and turfing the responsibility to someone else once their money was made, I think the people were more in the red level of morality.
It definitely can be blurry when trying to decipher between Orange and Red, especially when it comes to greed, but I think a starting point in this determination could be in considering the relative cost one is willing to undergo in order to gain financially. Red seems to be much more immediate and does not consider certain legal ramifications or anybody’s opinion-or physical well being for that matter. At first glance this seems to fit the corporate perpetrator’s profile well, but I think true egocentrism’s (Red’s) likely place in this mess was maybe more the predatory lenders perhaps. Those who dealt directly (face to face) with gullible borrowers. I think consequences are a good indicator of what level is being expressed. A Red offender goes to jail, and Orange offender gets a fat bonus while the system collapses. I really don’t think Red can produce the complex culture (LL) required in corporate dealings—there are just too many hoops to jump through, and rules to adhere to, for instance. Orange thrives by:
A). A fraternal-type “Good ol boy” system where we all benefit by helping each other out (LL). This type of culture “It’s not what you know, but who you know,” distinguished by people who are “in” or demonstrate success according to Orange values I.e. High-Status positions, material wealth, “winning” personality, etc. It is this culture that makes possible the “revolving door” political-economical system of corruption (NOTE: the “good-ol-boy mentality, I think originates with Amber, but that’s a whole other post). For example Henry Paulson, Treasury Secretary was Former CEO of Goldman Sachs. We all know how many former CEO’s head up major government committees or sit on governing boards. This culture requires one to do their share of “stepping on people,” “brown-nosing,” “back-patting,” in a non-violent yet sheerly competitive nature. Smearing, and back stabbing are definitely within bounds if you truly want to win. I just don’t think a Red-centered person could ever tolerate this kind of environment without lashing out!
B) Justify with evidence in a rational manner (LR). How many times has it been cited that “Housing prices will always go up?” I would assert (someone correct me if i’m wrong) that there was massive think-tank research reports that documented how this trend is permanent. I know I could–right now–start researching that trends prior to 2007 showed constant increase in real estate value. I would cite the steady increase in population growth in most areas, as well as factor in future projections including future loan purchases which would drive prices up further. These theses could all be backed analytically by the right statistics I’m sure. Thus in the end it was Rational (Orange) to believe that all of this is not just appropriate, but a total win-win situation! “Need more proof?” says the Paulson as Goldman CEO in ‘06, “Look at our ever increasing stock price.” How Orange can we get with this? Way more, because they all gained massive wealth which only Orangely solidified their convictions.
I think Orange saw the whole situation as “win, win”–an Orange ideal slogan in fact. “Regulations, you say? That’s only for for people who abuse the system. We don’t because we create real value!” Who could deny this? Anybody who did clearly wasn’t “in the loop.” And sure enough there were plenty of Representatives and Congress people “in the loop” to deregulate, just help them get elected again. You see, EVERYBODY constantly “wins” if they “play along”!!! Everybody in the “loop” was a “winner.” I think I’m gonna be Orange color blind after this mess! BTW check out Peter Schiff a guy who forecasted the economic collapse up against the euphoric Orange culture that saw no error of their ways.
As far as the UR quadrant I still need to do my homework. I mostly assumed it to be pretty much strictly the bio-physiological quadrant, but then I saw Part One of the recent Integral Life presentation and it gives more. Did you watch it? I found it to be tremendously heady, but I’m stubbornly beginning to accept that the AQAL model is heady by default. All I can say is that the only higher-Level manifestation I did see pertaining to this whole financial mess was in the UR quadrant and you mentioned it: Gucci is clearly the only Indigo brand around.

February 25th, 2009 at 11:57 am
“I would assert (someone correct me if i’m wrong) that there was massive think-tank research reports that documented how this trend is permanent.”
Actually they were betting it all on the following statistical formula:
http://en.wikipedia.org/wiki/Copula_(statistics)