Seduction, Corruption and Redemption-Minyanville

BUSINESS & MARKETS

LIFE & MONEY

VIDEO

COMMUNITY

SUBSCRIPTIONS & PRODUCTS

Seduction, Corruption and Redemption

Todd Harrison Oct 29, 2008 7:30 am


		Finding the path to globalization.

My grandfather used to say that what goes around comes around. The current crisis is the comeuppance of cumulative imbalances that have built since the turn of the century. The free market system forever changed and the ramifications will manifest for years to come.
While some see this as a nasty path, I’m viewing it through a constructive longer-term lens. Debt destruction and asset class deflation is a painful yet necessary progression that needs to occur before a stable economic recovery emerges. In order to get through this, we need to go through this and we’re going through it now.

In 2006, I shared that we would likely see a “prolonged period of socioeconomic malaise…entirely more depressing than a recession.”

STOCKS
RELATED ARTICLES
ALSO BY...

While I don’t profess to know how long this process will persist, I’ll offer that with global indices down 40-50% year over year, the arbiter of time and price is moving in the right direction. That, on the margin, is a healthy evolution that will present profound opportunities for those who preserved capital.

The single biggest risk to the golden age of globalization is the emergence of isolationism. The Dot.Gov bubble has seemingly burst and nations have taken steps to protect their own interests. The faith and credibility of the United States government and its policy makers are paramount as we edge through these trying times.

If the U.S.A. is to regain respect on a global stage, there are intuitive steps than can be taken. Protect savers by backing deposits, hold individuals that over-extended on credit culpable for their largesse, investigate institutions that engineered the financial machination and punish policy makers that were compliant through acceptance.

We must establish a fresh international foothold, admit the error of our ways and begin to rebuild trust. From there, we should allow for a seismic readjustment that will bring currency, commodity, equity and credit markets back to the state of equilibrium from which we’ll together grow.

There are no easy answers for what ails the global financial landscape but a bit of humility and a dose of humanity would go a long way.

True redemption—whether it’s in life, love or the markets—always begins within.

R.P.

Did you know the doors to Festivus 2008 are officially open? Have you yet locked your spot for the critter trot as last year's soiree sold out? (This is our annual event to commingle our professors, partners and Minyans while chowing down and listening to live music. The very best part? It's for the kids in the good name of my grandfather.)


Rate this article:			(0 Votes)

more BUSINESS & MARKETS articles »

Daily Article Index �

tags:

USA, NATIONALIZATION, BLAME

Comments (15)

See All Comments »

Mr Bacan

View Exchanges


10-29-2008, 3:46 pm
Toddo, Great article. If I was a fund manager, I'd be selling into any rallies. Why? because I can't see next years earnings being very good (as discussed on Minyanville). When there are bad earnings, there will be Read More

Dan Conine

View Exchanges


10-29-2008, 5:25 pm
In the blame of "moving off the farm", I think there is some truth. The whole truth, however, is in the numerical costs and the daily picture of what it costs to live. When cheap oil replaced labor on the farms, people learned that it was Read More

William Sinacori

View Exchanges


10-30-2008, 8:48 pm
Toddo, You wrote: "We must establish a fresh international foothold, admit the error of our ways and begin to rebuild trust. From there, we should allow for a seismic readjustment that will bring currency, commodity, e Read More

Amy M

View Exchanges


11-01-2008, 3:57 pm
or our economic savior or necessarily sustainable, especially for food products. We've been "globalizing" since before the silk roads opened up. Sumerians traded with the far flung middle east for wood and silver (they Read More

Jim M

View Exchanges


11-01-2008, 11:01 pm
How about tossing the conglomerates out there as part of the problem? Like Wal-Mart which chews up the opportunity of small business's. Remember back in the 70's when anti trust laws limited size so that we could retain opportunity for Read More


discuss this article and more on the mv exchange

No positions in stocks mentioned.

Get real-time options trading ideas from Steve Smith, veteran options trader and newsletter author, plus let him show you the way to cut risk and boost your returns through the strategic use of options. Click here for a free 14 day trial to OptionSmith by Steve Smith.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.