Executive decisions: Stupid is as stupid does

    We've read a lot in the last few months about how predatory loans have forced lower-middle-class owners (and poorer people) into foreclosure.  The amounts these folks owe on their recently purchased homes supersede their values.  All the mass media reports give the impression that only those on the bottom of the economic scale make dumb financial decisions about buying a home, or were hoodwinked into doing so.
    In an interesting online Wall Street Journal piece about how nationwide population migrations slowed between mid-2006 and 2007, an executive recruiter in Dallas is quoted about the challenges of filling an opening for a top job.  Dru George of the search firm Austin McGregor said he has interviewed candidates from all over the country about a job opening in Austin.  
    "A lot of these executives are $300,000 to $400,000 under water on their house," said Mr. George.  "Do they sell it at a loss or stay put?  That's something we see on a daily basis."
    If Mr. George is seeing that on a daily basis, then the pool of talent waiting to take the corner office in America's corporations is not ready to run a 7-11.  How much smarter are these MBAs than the folks who were hoodwinked by Angelo Mozzila and his merry band of thieves at Countrywide?  What does an executive whose house is way under water say during his first interview with Mr. George?  "Glub glub?"
    Perhaps Mr. George's comments were taken out of context and missed the salient point that he would be embarrassed to send such a manager to one of his clients for an interview.
    To read the Journal's piece online, click here or send me an email and I will forward it to you ("Contact Us" button at top of page).