Posted on 09/11/2013 7:28:35 AM PDT by Nachum
"'Your No. 1 client is the government,' John J. Mack, Morgan Stanley's chairman and chief executive from 2005 to 2009, told current CEO James Gorman in a recent phone call. Mr. Gorman, who was visiting Washington that day, agreed." - Wall Street Journal, September 10, 2013.
The five year anniversary of the financial crisis' has predictably generated all manner of commentary about its presumed causes. What's most unfortunate five years later is that financial' and crisis' are still used together. It's unfortunate simply because despite what you read, the crisis was decidedly not financial, nor was it caused by a crackup in the housing market, nor was it caused by the failure of Lehman Brothers.
To understand why, we need only ask if the 2010 bankruptcy of Blockbuster Video had any notable market or economic impact. Obviously there wasn't much to report. Most sentient beings said then, and would say now, that the bankruptcy of the video rental behemoth spoke to a dynamic capitalist system exhibiting a healthy ability to replace one form of commerce with a better one.
Blockbuster's bankruptcy revealed that when left alone, capitalism works. In Blockbuster's case a low return, retail space eating capital destroyer was replaced by an online DVD service in NetFlix, and then to show just how dynamic is capitalism, NetFlix is now replacing itself with an even leaner NetFlix focused on video streaming. Brilliant.
(Excerpt) Read more at realclearmarkets.com ...
Bottom line about Capitalism is “March or Die.”
Blockbuster died. Just like Capitasm intended.
Yes, Blockbuster’s failure is proof that capitalism works. But, the comments “Your No. 1 client is the government” is preventing capitalism from working. The government is choosing the winners and losers.
BTTT!
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