You're probably building the wrong thing and it can happen in any economy.
I'dont know about you guys at US but consumers are not ceasing to exist and if they exist they usually buy something and some things even more than in good economy. (Eg entertainment does pretty well in hard times.)
And people will always spend on entertainment too - although, less pricey choices at times like this. And - let's face it - net-based entertainment is pretty much a bargain compared to movies, concerts, Broadway shows, etc.
what innovative device or method will deleverage morgan stanley? what invention will suddenly make mortgage holders solvent?
entrepreneurs will not save america because our problem is not a lack of novel ideas. our problem is solvency and debt. indeed one can argue that "innovation" in the financial markets are what landed us in this mess.
No. He's trying to say that the solution to this situation is to move back to an economy that actually grows from organic growth of businesses, and not just from the unsustainable expansion of asset bubbles - whether those assets be stocks or real estate. And it's a well-known fact that small business is responsible for the lion's share of organic business growth in the US - and always has been.
7 comments
[ 3.1 ms ] story [ 31.1 ms ] threadBut if consumers won't spend money on anything a startup offers, how does that startup succeed?
I'dont know about you guys at US but consumers are not ceasing to exist and if they exist they usually buy something and some things even more than in good economy. (Eg entertainment does pretty well in hard times.)
Or saves them time.
And people will always spend on entertainment too - although, less pricey choices at times like this. And - let's face it - net-based entertainment is pretty much a bargain compared to movies, concerts, Broadway shows, etc.
entrepreneurs will not save america because our problem is not a lack of novel ideas. our problem is solvency and debt. indeed one can argue that "innovation" in the financial markets are what landed us in this mess.