Tag archive for ‘Downturn’
Encouraging the Freedom to Fail
American business is the most robust, the most efficient, and the most effective in providing returns to shareholders on invested capital. We take capital from all points on the globe and turn it into returns that are often multiples of what they initially invested. No other country is as effective at generating wealth as the United States. We are so effective because of our commitment to capitalism and free markets. Part and parcel of that commitment is a belief in freedom. One of those freedoms has to be the freedom to fail. For if failure is not a consequence of bad decision making by private enterprise, we will surely fail in the long term in generating wealth. Life without risk, in business, is not worth investing in.
What a Lehman Brothers Bank failure could mean for the US economy and banking system.
Even if Lehman can find a buyer, the venerable bank founded by Mayer Lehman in 1850, will be gone forever. Leaving only Goldman Sachs as the final bank standing of those banks that became New York financial titans founded by Jewish immigrants of the mid 1800’s.
US Treasury enters the Home Mortgage Business
I am sure you have all read by now that the US Treasury Department has effectively “seized” control of the two US home mortgage market corporations - the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Me) - and placed them under the oversight of the Federal Housing Finance [...]
Shooting Craps - Vegas comes up “snake-eyes!”
Now I know recession is close at hand. When the purveyors of sex, drugs, and cheap thrills hit the skids - you know the rest of the economy can’t be too far behind. America’s most outrageous city, Las Vegas, is facing a growing multitude of problems, and they all boil down to a single, unavoidable [...]
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