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Capitalism isn’t dead. How things have changed starting yesterday.

Published on December 12, 2008

Some things won’t change because they remain untouchable; Cheers to all you entrepreneurs that have personal capital to invest into your companies (Ratio 1:1 million).  But unsuspected larger bodies of ‘power’ will lose because of simple things like cash and margins.  What ‘Nifty-50’ will take the dive this time?   In the 1970’s we saw indestructible companies that couldn’t possibly be defeated, lose in a quick, cut-throat race to the end. And then in the 1990’s the internet-bubble burst into the scene with its ‘Get large or Get lost’ aphorism.  Back then you could raise a substantially large amount of money without ever having made a profit.  And then the dot-com bubble burst, March 10, 2000 to be exact.  The dot-com bubble crash cleared approximately $5 trillion in market value of technology companies between March 2000 and October 2002.  Ouch!  And this is somewhat in relation to the current economic crisis.  So what will happen this time?  According to Richard Foster, coauthor of Creative Destruction, new regulations will be placed to help avoid the problem again.  Not an easy task. 

 

So how has capitalism changed, starting yesterday?   Three hints:  Ownership, regulation, and public borrowing and spending.  What do you think?

 
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© Dave Coleman 2012
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