Tasty Financial Nugget
This is the best financial “nugget” I’ve come across discussing the current state-of-all-things financial the last few weeks. Enjoy (or not):
The failure of a few companies is not evidence that capitalism has failed but evidence that it is working. Failure sends a message to other market participants that the practices that caused the failure should be avoided. That message applies not only to private companies but to the government institutions that also failed us in this crisis. Attempting to return to the status quo rather than allowing private company failures and reforming failed government institutions does not advance us as a society. It mires us in mediocrity.
–“A Colossal Lack of Judgment“; Alhambra Investments (7/19/09)
You can’t put it more succinctly than that . . .