Wednesday, October 22, 2008

Darkest Hours Create Inspiration

Although the markets may be tanking they are flushing out what can't survive in order to prime the system for future success. Some of the things that will happen are:

  • Bureaucrats will lose their jobs and flood the employment market and some of them will become entrepreneurs by starting their own consulting companies.
  • Businesses will trim the fat in their businesses to become more efficient.
  • New creative products and services will emerge in order to make us more efficient with our tasks.
  • The market will reallocate resources to their highest use
  • Markets will create companies that create more value, new and better companies will evolve.
  • This will be the biggest extinction level ever known of inefficient markets and companies.
  • Investors will learn that capitalism is good and realize that the markets are efficient on their own.
In looking for a silver lining in all of the disruption in the markets one should see that we are already in a business climate of consolidation ala the financial industry, the auto industry and many small businesses that will get gobbled up by their more efficient competitors. And from all of this consolidation the market will be strong and ready to grow into a greater market than we have experienced in the recent past.

0 comments: