Capital markets become socialist… I try to salvage the good in every situation, rose colored glasses, the glass is half full, all mantras that stem from the entrepreneur within. I especially call upon my optimism when I watch the demise of the capital markets of the United States. As the evolution of the former financial markets unfold, I stand in awe as the federal government begins to control bellwethers of the United States private sector.
The silver lining in my opinion will fall squarely on the small caps or aka the “startup”. Just like it did in the late 90s and early 2000 when the dot.com blow-out took hold, it was the mighty small cap that led the pack. The over extended, non-nimble, greedy large-caps have committed one of the seven deadly sins…gluttony. It’s as Warren Buffet said “be fearful when people are greedy”, but…“be greedy when people are fearful”. I think the startups that will evolve from the phoenix of the ashes will far outweigh the demise…..and yes I realize that may be hard to see at this point. Whatever small faith I still place in our government, I believe when the time is right the socialist will revert back to the capitalist.