“Bring Out Your Dead”

Thu, Oct 2, 2008

Down to Business

Are we in a recession yet?

Certainly, Washington hasn’t fully acknowledged it even though they are prophesizing nothing less than another Great Depression without passage of the Bailout. If we are in a recession, it definitely feels like we are in a “slow motion” one. It’s like freezing up in a bad dream, unable to move while fully aware of being in grave danger.

If there is anything certain about today’s global economy, it is its uncertainty. Are things as bad as they seem? Well, overall, corporate balance sheets are fairly strong (outside of financials, autos and other credit dependant sectors) and umeployment is low. This tells me we are far from being in a Depression (unemployment was at 25% during the GD). Thanks to transition to fair-value accounting, valuations are also more realistic (don’t blame the symptoms for the cause of our financial mess).

I say it’s time to return the American economy to the lean capital producing machine it once was…Washington needs to put pressure on Wall Street to once and for all to bring out the dead. Poor regulation, like a ban on short selling will do nothing but prolong the agony of those whose future is in a death-cart (Monty Python captures this perfectly in the clip above).

This post was written by:

Garry - who has written 4 posts on CFO Lounge.

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3 Comments For This Post

  1. Alena Says:

    Good point. The government is just letting these dying companies sip from the Holy Grail (pun intended).

  2. Chad Cohen Says:

    good first post, garry.

  3. Dirty Birdy Says:

    That post if dynamite!

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