Top Definition
1.how an entire organization can rise up to help a boss justify some deal he’s inclined to do, regardless of its merit
2. any company’s inherent propensity to do dumb things (or avoid doing smart things) simply for the sake of doing them.
1. The stock market collapse was encourage by many respected investors by participating in the overarching fininacial industry institutional imperative of rolling over debt and reselling them as investments.
2. Warren Buffett in discusing the motivation of bankers and institutional leadership in a 1989 letter. Believes that Institutions are built to appease the wishes of a few in leadership positions, to the point that employees are convinced that they are justified in all of their actions regardless of the effect. Specifically in addressing the needs and motivation of bankers, who will encourage any deal regardless of merit.

2. “Don’t ask the barber whether you need a haircut.”"It was his thinly veiled dig at Wall Street bankers and the perverse incentive system for corporate “advice” on mergers and acquisitions — namely that bankers are paid only if a deal is completed. (Bankers typically earn nothing if a deal is abandoned or collapses, giving them little reason to recommend against pursuing a transaction.)"

It was a timely note from
by Abcent Minded March 02, 2010

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