The Eighth Circle

In Dante’s masterpiece, he and the poet Virgil travel through hell. On the way they meet with a cavalcade of scoundrels suffering various punishments.

In the eighth circle, they run into a whole host of malefactors: Sorcerers, Flatterers, Hypocrites. The most memorable group were the Thieves. Some of Dante’s erstwhile friends have corrupted their own souls through their fraudulent dealings, and he describes how their essential nature changes from a man to a six-legged monster.
I was reminded of this while watching the metamorphosis of our banking system from a diversified savings-and-loan framework to a gigantic wholesale funding machine. Driven by greed and facilitated incompetent risk management, the larger banks originated, packaged, and sold scads of toxic financial waste that now must-must-be gobbled up by the Federal Government. In the process, a competitive system has been lost, and government capital and control will inevitably follow.
Dante punishes his malefactors with unquenchable fire, while reserving the worst punishment-imprisonment in glutinous ice-for traitors in the ninth circle. I think Dante was too gentle.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T21:19:31+00:00 October 2nd, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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