In 2000, when lots of small companies died, some said the wheat was separated from the chaff, or only the strong survive. The sense was that weak companies with no business model shouldn’t make it. Billions of venture capital was lost. And. Small investors, accounting for billions and billions of public technology companies. Gone. All gone.
There has been a historical collapse of some of the world’s best known financial service companies. Companies like Lehman Brothers, Merill Lynch, and maybe IAG, and Washington Mutual. Big companies, with long track records are vanishing. Bank of America seems to be cherry picking with the blood running in the street - that’s what some of the smart technology companies did in 2000.
When the the fed bailouts stop, and billions and billions of market capitalization are wiped out, what will they say. Companies shouldn’t have made risky investments by giving money to unqualified loan applicants? I don’t know. It’s hard to make sense of what’s happening and how it will stretch out of finance to other sectors.
Is it time to break out the bean recipes?