1 Boring Old Man

the making of a President…
By 1boringoldman

Group Psychology is a fascinating topic. It’s more that that for Group Therapists. It’s the key to creating a Group Milieu that can become a powerful force for change instead of a "mob." What follows is my own paraphrasing of the ideas of Winfred Bion, a British Psychoanalyst from the School of Melanie Klein who worked with therapy groups.

• The forces mobilized in groups are suprisingly strong and predictable. Initially, there is no insurance that the group will be safe. As people begin to interact and the inevitable tensions begin to build, one or more people will begin to frustrate others. Sooner or later, the group will begin to scapegoat on or several members. If left alone, this weaker member will be driven from the group. That’s a disaster, because the group has become a "killing" group, organized around shared hatred.
• The purpose of the leader is to keep this from happening. Since the whole task of group formation is to create an atmosphere of safety, the leader must protect the weaker members. It takes skill to allow these vulnerable members to learn how not to frustrate others and keep the group from expelling them.
• If the leader is able to keep the group from scapegoating members and becoming a dangerous group, again, sooner or later, the aggression of the group will be focused of the leader, usually around some mistake he/she has made.
• All the leader has to do is survive the attack, not by power but by admitting the mistake, and not being overly defensive.

Once the group has been prevented from scapegoating members and killing off its own leader, it becomes safe. Groups that make it through the process become working groups and can be an extremely powerful force for change. Such groups last for a long time. When a new member is added or an old member lost, the group usually goes through an abbreviated version of the same process.

How’s he doing?

Banks to Assure Congress About Use of Public Funds
Wall Street Executives Say They’re Looking to Improve Risk Management
Washington Post
February 11, 2009

Wall Street is trying to move out of its defensive crouch, with top bankers planning to tell Congress today that they are making loans, managing their money prudently, and intending to pay back any public funds at a profit to the U.S. Treasury.

Fighting a perception that money from a federal bailout plan has been used to underwrite lavish bonuses or squirreled away from businesses and households that need credit, chief executives of major institutions like Bank of America, JP Morgan and others will acknowledge that the public has a right to be suspicious in the wake of a financial crisis that has helped drive the country into a deepening recession.

"Taxpayers feel, and rightly so, that if a bank is having sufficient trouble to require public support, all its financial decisions should signal a conservative, sober and frugal approach to the financial health of the company," Bank of America chief executive Kenneth D. Lewis says in written testimony he is scheduled to present this morning at a hearing before the House Financial Services Committee. "There has been no shortage of examples of executives or companies spending money in ways that did not have a direct benefit to the business."

But Lewis and others also will note that their companies have made tens of billions of dollars in new loans to businesses and homeowners in recent weeks, and that as individuals many of them have foregone bonuses altogether. In some cases, the prepared statements say, bankers within days will make their first dividend payments to the U.S. Treasury under the terms of the capital investments received from the government under the Troubled Assets Relief Program.

"We have every incentive to lend. And, despite recessionary headwinds, we are lending," Lewis’s statement says, while also noting that Bank of America will write a $400 million dividend check to the Treasury next week and is scheduled to make $2.8 billion in payments through the year.

"We intend to pay all the TARP funds back as soon as possible," the statement says.

This morning’s hearings will place the chieftains of eight of the nation’s largest banks before a House committee that is expected to deliver a harsh tongue-lashing over their performance and the use of the public funds invested into their companies.

With an even broader financial rescue plan in the works, some of the Wall Street executives have moved to preempt the withering criticism by proposing their own solutions to the economic meltdown…

Washington Post

Gerson: Empty Pragmatism
    Obama’s deference to Democrats shows his political intent.
Parker: Obama’s Lack of Maturity
Marcus: Bad Week, Strong Start
Milbank: Dr. Geithner’s Financial Stress Test
Ignatius: Is the Treasury Shellshocked?
Charles Munger: No Pain Now, No Gain Later
In the Tanks: Debating the Financial Rescue Plan

New York Times

Opinion Room for Debate
Geithner’s Bailout Can the new plan shore up the financial system?
Dowd: Trillion Dollar Baby
Friedman: Smart Bailout
Editorial: Next Chapter
Op-Ed: Coin-Toss Banking