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The Reverse Industrial Revolution


Companies must reinvent themselves if they hope to see better days.

"It is with our passions as it is with fire and water; they are good servants, but bad masters." --Roger L'Estrange, Aesop's Fables, 1692

Today's financial landscape is akin to a forest fire, scary and dangerous yet necessary to establish fertile ground for an eventual rebirthing.

As we witness historic wealth destruction, it's easy to get caught up in the gloom and doom. Acrimonious flames are rapidly spreading as social mood shifts, tempers flare and patience runs thin.

The point of recognition is here and it can be downright depressing.

There are three lenses with which to view this once-in-a-lifetime event-optimism, pessimism and realism-and each has a role as we wade through this process of price discovery.

Optimism is necessary to identify winners in the new world and find the future franchises of tomorrow.

Pessimism is warranted when viewing organizations that lack financial staying power or are encumbered with too much debt.

Realism is required to understand that time and price are the only arbiters of our financial fate and there will be inevitable casualties of war.

Welcome to the reverse Industrial Revolution, where most companies must reinvent themselves if they hope to find their way to better days.

What Goes Around Comes Around

Taking the other side of conventional wisdom is never easy. When Minyanville first discussed the "prolonged period of socioeconomic malaise entirely more depressing than a recession" in August 2006, the pushback was palpable.

Now that it's arrived, offering any semblance of positive perspective is widely considered Pollyanna. While the other side of the business cycle will take time-measured in years, not months-the simple truth is that in order to get through this, we needed to go through this.

The fact that we're going through it now is on the margin constructive.
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No positions in stocks mentioned.

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

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.

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