December 21, 2009 --

LPR doubts that Federal Reserve Boad Chairman Ben Bernanke would consider a few anecdotes from this bank-battered Bronxite as persuasive support the theory that the economy is in bad shape because “good will” is no longer consider a business asset.

Last month, The New York Times denounced as “predatory” the banking practice of charging $35 for overcharges. At the time, Capitol One Bank had charged me $35 for a $25.90 overcharge paid by the bank. (The irony of the term “overcharge” should not go unnoticed.) Thereupon I advised Capitol One of the Times’s editorial , along with a check for $25.90. I have just opened my latest statement from Capitol One. It acknowledges the $25.90 payment and still demands $33.92 (the $35 charge less the $1.08 in the account at the time of the overcharge.) I do not regard a $35 charge on a bank expense of $25.90 an expression of “good will.”

Then, of course, there are the credit card interest rates in the 30% vicinity that hammered the citizenry. What is fascinating, for me, is that this expression of “Henry F.. Potter”-ism did not prevent offending banks from failing. I am not confident, however, that Chairman Bernanke sees a connection between aggrandizing and predatory business practices, and business failure.

As I follow the Fed, the focus is on the Dow Jones average, not the unemployment rate, that is to say, in what has long been a cliché, ,but nonetheless descriptive, the Fed’s eye is on Wall Street, not Main Street.

This is the time of year when “It’s a Wonderful Life” is shown on television. This itself “wonderful” Frank Capra film offers two business models: the “good will” as asset model of George Baily, who believed in cooperative free enterprise; and the “bad will” as asset model of Henry F. Potter, described as “the meanest man in town.”

The management style of “Henry F. Potter”-ism, expressed in bottom line (and self-defeating) callousness is, perhaps, equaled by a derisive tone encouraged(?) among front-line employees.

I think, for example, of the Con Ed representative who, when I told him I was concerned that the sudden darkness is my bedroom will lead to injury, suggested that I go to an area hospital. I think of the payphone operator (not a Verizon payphone; I have had difficulties with Verizon payphones, as well)) who suggested I get a flashlight to read the refund instructions on a dysfunctional payphone, at night, on Broadway and 68th Street. (Our high tech capability has stopped short of getting refund – or contact with party – though the offices of a live operator?)

What profiteth a business to follow the “bad will” model, treating customers shabbily, and then folding – or seeking government support by means of forced exactions from the taxpayers – the same people treated shabbily and who, thereafter, find themselves, depleted of funds, lacking purchasing power. Isn’t it logical to conclude that people without purchasing power are the stuff of recession, even economic depression?

Or is it that for the aggrandizers, logic is irrelevant?

Perhaps, at this year’s telecast of “It’s a Wonderful Life,” Wall Street and its allies in Washington, will cheer each appearance of Henry G. Potter. Following which, the deluge of red ink.