Cry me a river

I am feeling nostalgic and remembering when Worldcom was trading at 6 cents per share and had a market cap of $30 million. Many of my co-workers were getting margin calls on mortgage loans (your house was your collateral) of 6 figures at 9 am to be payable in cash by 2 pm the same day.  Of course, there was my favorite –  AMT: you lost everything but still got a bill from Uncle Sam on your non-existent earnings.  I do not remember a bailout, or lengthy discussions on the hill about how to save the hi-tech industry.

As an industry we took our lumps, learned our lessons, retrenched and came roaring back with companies/products like google, facebook, ipod and wordpress (disclosure: that’s where diaper money comes from.)  The people who lost so much the first time around, are back, well some of us.  We understand that its the way to the valley, and we follow the words of Rudyard Kipling:

If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you’ve spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build ’em up with worn-out tools:

Which bring me to Goldman Sachs, the latest company to be helped by the fed…and Warren Buffett…and Japan’s third largest bank.  At $125 per share, you have be Warren Buffett to comfortably afford the investment.

I am rusty on my economics, finance, and credit market studies, so I will not comment on the merits of a bailout vs.world monetary collapse. It just seems to me that wall street is full of cry babies.  They played musical chairs with high-risk debt, and can’t believe the music stopped and they are “out.”  Furthermore, they are – as my mommy friends would put it –  sore losers.  Life was good while the huge profits and bonuses were coming in, but now that things are going south, well its just “unfair.”

Now I must say that I have nothing but compassion, for people going through this.  I am also not ranting at individual employees but the industry overall.  I would not wish this on anyone.

Here is my epiphany for the day, and advise to the people in the financial industry trenches: Necessity is the mother of all invention, and that is were the true risk-takers and innovators congregate.  Spend this time retrenching and looking for the next opportunity, rather then asking for a handout.  The  next big thing will come and fortunes will be made again.

Leave a comment

2 Comments

  1. If it can be screwed up, the Government will screw it up.

    Reply
  2. dianarss

     /  October 13, 2008

    booboo, i love ure post!

    clearly, you are our mothers daughter!

    Reply

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