"The investments of businesses are ridiculously low, as low as after the Second World War. The reason for this may be the immense indebtedness of private households. The only thing that blossomed in the US in the last years was Wall Street - that is now killing itself.
The financial markets are many times greater than the real economy needs for its investments and its commerce. The volumes are so inflated that they must be scaled back, at least a third and probably two-thirds. Many bankers and brokers will not have anything to do any more...
The classical shareholder does not exist any more today; there are only share-turners. Most are professional investors that are not interested in the business.."
Fredmund Malik is different from the mass of consultants. He has absolutely nothing in common with American management theory. He sharply criticizes the idea of shareholder value, business management oriented onesidedly in the interests of shareholders. He sees there one cause for the worldwide financial crisis. He also regards the conventional training of managers in MBA schools as wrong.
to read the interview with Fredmund Malik "Capitalism has Failed" published on 7/13/2010, click on