The news yesterday included some troubling facts about the economy - 3 formidable "giants" had been bought out, bankrupted or made people aware of some major struggles they were facing. The Dow and the NASDAQ reflected this by having one of the worst days in decades. As I watch the news this morning - the world is following suite with awful trading and horrible numbers. Do you think we are in a down economy?
When you look at financial "crashes" in the past it becomes clear that they are usually a result of investors putting too much faith in one segment. That was true in the late 20's when people jumped off buildings, it was true when the Irish economy crashed and the potato famine followed and it was true when these companies decided to jump on the real estate band wagon.
Any Lessons? Well I am not an economist but one thing I notice is how - to quote Mike Douglas in the movie Wall Street - there is "no skin in the game". Right up to the final hour everyone still receives their fat salaries and the investors and even the public are left holding the bag. In my line of work if I know my numbers are not where I want them I work harder and if I don't hit them I make less - why should that be any different on Wall Street. I don't get it.
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1 comment:
great comment Frank!
Even with companies struggling, and salespeople not hitting their numbers, we're seeing as much complacency today as we did when things were humming along a couple of years ago.
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