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Feb. 8, 2013

Rabbi Berel Wein: Lofty ideals must be followed with grounded applications

Clifford D. May: Letter from the West Bank
Steve Rothaus: Judge OKs plan for gay man, lesbian couple to be on girl's birth certificate
Gloria Goodale: States consider drone bans: Overreaction or crucial for privacy rights?
Environmental Nutrition Editors: Don't buy the aloe vera juice hype
Michael Craig Miller, M.D.: Harvard Experts: Regular exercise pumps up memory, too
Erik Lacitis: Vanity plates: Some take too much license
The Kosher Gourmet by Susie Middleton: Broccoflower, Carrot and Leek Ragout with Thyme, Orange and Tapenade is a delightful and satisfying melange of veggies, herbs and aromatics
Feb. 6, 2013

Nara Schoenberg: The other in-law problem

Frank J. Gaffney Jr. : A see-no-jihadist for the CIA
Kristen Chick: Ahmadinejad visits Cairo: How sect tempers Islamist ties between Egypt, Iran
Roger Simon: Ed Koch's lucky corner
Heron Marquez Estrada: Robot-building sports on a roll
Patrick G. Dean, M.D.: Mayo Clinic Medical Edge: How to restore body's ability to secrete insulin
Sharon Palmer, R.D.: 3 prostate-protecting diet tips
The Kosher Gourmet by Emma Christensen 7 principles for to help you make the best soup ever in a slow cooker
Feb. 4, 2013

Jonathan Tobin: Can Jewish Groups Speak Out on Hagel?

David Wren: Findings of government study, released 3 days before Newtown shooting, at odds with gun-control crusaders
Kristen Chick: Tahrir becomes terrifying, tainted
Curtis Tate and Greg Gordon: US keeps building new highways while letting old ones crumble
David G. Savage: Supreme Court to hear case on arrests, DNA
Harvard Health Letters: Neck and shoulder pain? Know what it means and what to do
Andrea N. Giancoli, M.P.H., R.D.: Eat your way to preventing age-related muscle loss
The Kosher Gourmet by Diane Rossen Worthington Baked Pears in Red Wine and Port Wine Glaze: A festive winter dessert
Feb. 1, 2013

Rabbi Dr. Tzvi Hersh Weinreb: Redemption

Clifford D. May Home, bloody, home
Christa Case Bryant andNicholas Blanford Why despite Syria's allies warning of retaliation for Israeli airstrikes, the threats are likely hollow
Rick Armon, Ed Meyer and Phil Trexler Ex-police captain cleared by DNA test is freed after nearly 15 years
Harvard Health Letters: Could it by your thyroid?
Sharon Palmer, R.D.: When 'healthy food' isn't
Sue Zeidler: Coke ad racist? Arab-American groups want to yank Super Bowl ad (INCLUDES VIDEO)
The Kosher Gourmet by Nealey Dozier The secret of this soup is the garnish
January 30, 2013

Allan Chernoff: Celebrating 'Back from the Dead Day'

America isn't a religious country? Don't tell Superbowl fans!
Mark Clayton Cybercrime takedown!
Germany remembers Hitler rise to power
Israel salutes U. N. --- with the one finger salute
Sharon Palmer, R.D.: Get cookin' with heart-healthy fats
Ballot riles Guinness World Records
The Kosher Gourmet by Elizabeth Passarella Potato, Squash and Goat Cheese Gratin
January 28, 2013

Nancy Youssef: And Democracy for all? Two years on, Egypt remains in state of chaos

Fred Weir: Putin: West is fomenting jihadi 'blowback'
Meredith Cohn: Implantable pain disk may help those with cancer
Michael Craig Miller, M.D. : Ask the Harvard Experts: Are there drugs to help control binge eating?
David Ovalle Use of controversial 'brain mapping' technology stymied
Jane Stancill: Professor's logic class has 180,000 friends
David Clark Scott Lego Racism?
The Kosher Gourmet by Mario Batali The celebrated chef introduces us to PANZEROTTI PUGLIESI, cheese-stuffed pastry from Italy's south


Jewish World Review Dec. 19, 2008 / 22 Kislev 5769

Restoring trust

By Linda Chavez


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http://www.JewishWorldReview.com | The shocking story of Bernard Madoff and his alleged $50 billion Ponzi scheme have implications that go well beyond the wealthy individuals and charities who were bilked of their money. As in all such scandals, this one involves a betrayal of trust. And trust ultimately is what allows economies, large and small, to function. Without it, our entire system of money would collapse.


What Madoff is alleged to have done is to create an upside-down pyramid in which he paid his investors phony "profits" from new investors' capital, while skimming off most of the money for himself. The scheme works only so long as new investors can be found to continue making payments to earlier investors, or until someone discovers the chicanery. In Madoff's case, his own children blew the whistle when they realized what he was doing.


Still, you wonder: How could so many savvy people be duped by the oldest trick in the book? Madoff's investors weren't naifs. They were some of the most astute investors around, including other billionaires who had made their own money largely by being meticulously careful in how they chose to invest. But they trusted Madoff because many of them knew him personally.


Madoff was no fly-by-night snake oil salesman. He lived and worked in the community. He was involved in the same charities as his investors. He was a co-religionist who, his investors believed, shared the same values and commitment to a strong code of ethics that would insure against deception and thievery. And so, investors handed over millions of dollars to a man they thought they knew and could trust, without doing due diligence.


"What fools," you say? "I'd never hand over my money without checking the guy out." But in fact, we do hand over our money, figuratively and literally, every day without hesitating. And we do so because we trust individuals, institutions, and our government. Trust is what makes the economic world go round.


In an important new book, "The Ascent of Money: A Financial History of the World," Niall Ferguson explains it this way: "When an American exchanges his goods or his labor for a fistful of dollars, he is essentially trusting (Treasury secretary) Hank Paulson (and by implication the Chairman of the Federal Reserve System, Ben Bernanke) not to … manufacture so many of these things that they end up being worth no more than the paper they are printed on. … (M)oney is a matter of belief, even faith: belief in the person paying us; belief in the person issuing the money he uses or the institution that honors his checks or transfers. Money is ... trust inscribed."


And once trust breaks down, the system itself collapses. What is worrisome in today's troubled economy is that trust seems to be dissolving before our eyes. Why have banks stopped lending? Why are people pulling their money out of the stock market, driving down the Dow and NASDAQ? Why are people afraid to buy houses?


It all boils down to trust. Banks don't trust that debtors — companies, individuals, even other banks — will pay back the money they lend, so they stop lending. Investors don't trust that companies will be able to earn profits in the near future, so they stop investing. Ordinary people don't trust that the home they buy will be worth what they paid for it in a year or even a few months, so they hesitate buying.


This breakdown in trust feeds on itself. Distrust becomes self-perpetuating and contagious.


The challenge will be how best to restore trust — and to do so in ways that do not jeopardize freedom or the efficiencies of the market. As Ferguson's book illustrates, larcenies like the Madoff scheme or stock and real estate bubbles like the ones we've experienced over the last decade are nothing new and will, no doubt, occur again. But if we are to live and prosper in communities that extend beyond our immediate family members we must fall back on mutual trust, even when it sometimes fails us.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.


JWR contributor Linda Chavez is President of the Center for Equal Opportunity. Her latest book is "Betrayal: How Union Bosses Shake Down Their Members and Corrupt American Politics". (Click HERE to purchase. Sales help fund JWR.)

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© 2006, Creators Syndicate

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