The executives were being rewarded not on the basis of their companies' performance but on the basis of stock prices.
I think that there's the core of your economic boom and crash. I worked in a company for 2 years that provided very good stock options for all the employees, not just the executives (although the execs were looking at millions in rewards rather than the thousands we stood to gain), and pretty much all of us were constantly focussed on doing stuff to raise the stock price.
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I think that there's the core of your economic boom and crash. I worked in a company for 2 years that provided very good stock options for all the employees, not just the executives (although the execs were looking at millions in rewards rather than the thousands we stood to gain), and pretty much all of us were constantly focussed on doing stuff to raise the stock price.