Post by account_disabled on May 1, 2024 22:59:28 GMT -6
PAUL KARRES OWNER PRESIDENT NEVADA LEADERSHIP INSTITUTE The events and situation of the financial and real estate markets as well as other industries can be boiled down to one simple phrase Acute Bad Judgment Syndrome. ABJS can be broken into four parts . Poor situational awareness . Closely coupled systems.
Overestimation of one s own ability and . Herd Mentality. Of those four the fact that we are dealing with a complex closely coupled system which reaches even into severe budget shortages in about states shows we are engaged in a situation that is beyond the ability of any one person or group to Heavy Construction Contractors Email List deal with it effectively. Throw in the other three factors and it will be months or even years before the U.S. economy gets back on track. The highly visible debacle with the automobile industry is primia facie evidence as to how bad the leadership is at the top in a major industry. And they are not alone either. The days of a strong economy bailing out poor corporate leadership are over. ve got to be good. George Armstrong Custer is probably rolling over in his grave laughing because this isn t any different than the Battle of the Little Bighorn. Remember there were no survivors.
MOHIT Regulation is necessary but not sufficient I agree to a large extent with what Adnan Younis Lodhi has said. However one must realize that the government has to play a regulatory role if the free market has to work as intended. Left to itself a free market risks running into crises like this one. This is because of the concept of externality . Some party has to regulate the market to internalize externalities. It is true that such a party may not function well and there is no way to design a system where it never fails. That however is no reason to abandon the idea altogether. Regulations for the current crisis Some people have suggested a regulation to make a substantial downpayment mandatory. But the market can fail in other ways even after this is done.
Overestimation of one s own ability and . Herd Mentality. Of those four the fact that we are dealing with a complex closely coupled system which reaches even into severe budget shortages in about states shows we are engaged in a situation that is beyond the ability of any one person or group to Heavy Construction Contractors Email List deal with it effectively. Throw in the other three factors and it will be months or even years before the U.S. economy gets back on track. The highly visible debacle with the automobile industry is primia facie evidence as to how bad the leadership is at the top in a major industry. And they are not alone either. The days of a strong economy bailing out poor corporate leadership are over. ve got to be good. George Armstrong Custer is probably rolling over in his grave laughing because this isn t any different than the Battle of the Little Bighorn. Remember there were no survivors.
MOHIT Regulation is necessary but not sufficient I agree to a large extent with what Adnan Younis Lodhi has said. However one must realize that the government has to play a regulatory role if the free market has to work as intended. Left to itself a free market risks running into crises like this one. This is because of the concept of externality . Some party has to regulate the market to internalize externalities. It is true that such a party may not function well and there is no way to design a system where it never fails. That however is no reason to abandon the idea altogether. Regulations for the current crisis Some people have suggested a regulation to make a substantial downpayment mandatory. But the market can fail in other ways even after this is done.