Weathering The Financial StormEconomic turmoils come and go. This one, though, may be here for awhile. Some perspectives: How did we get here? At Forbes, Barry Ritholtz puts the blame on Alan Greenspan and a culture of over de-regulation: "Too many people forgot that an ounce of prevention is worth a pound of cure. Reasonable capital requirements? Who needs 'em! Leverage limitations? Forget it! Enforcement of lending standards? Not here in America! And all these misguided attempts at allowing the markets to police themselves have come home to roost. The clean-up for this is going to be expensive. We still have no idea how many trillions--yes, that's trillions with a "T"--this is going to cost." While Larry Kudlow credits Treasury Secretary Henry Paulson for restoring some sanity: "Last March, acting in conjunction with Fed head Ben Bernanke, Paulson safeguarded the banking system and the whole global financial structure by backstopping a JPMorgan-Chase deal to acquire the ailing Bear Stearns with $29 billion of loan guarantees. The action succeeded in stabilizing markets, but it put U.S. taxpayers on the hook big-time. Closer to home, Dell sees global IT demand "softening", while HP plans a massive layoff. But at bMighty, Fred Paul is looking at the glass as slightly full: "Historically, smaller companies are the first to take advantage when the economy begins to recover, and that's likely to be the case again. But trying to time the recovery and jump in at the last minute is a fool's game. If you want to be there for the upswing, you have to weather the troubles." Posted by Joe Caponi at 11:26 AM, September 16, 2008 This is a public forum. United Business Media and its affiliates are not responsible for and do not control what is posted herein. United Business Media makes no warranties or guarantees concerning any advice dispensed by its staff members or readers. Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of United Business Media LLC and may be edited and republished in print or electronic format as outlined in United Business Media's Terms of Service. Important Note: This comment area is NOT intended for commercial messages or solicitations of business. |
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