SEARCH BLOG: CONTROL
There is increasing happiness on Wall Street as CNN reports:
Let's step back a little.
In recent weeks, a number of big financial services companies - including Morgan Stanley (MS, Fortune 500), Citigroup Inc. (C, Fortune 500) and UBS AG (UBS) - have received capital infusions from foreign government investment entities to help offset subprime related losses.
"The big news of the day are these investments in investment banks by sovereign wealth funds," said Brian Gendreau, investment strategist at ING Investment Management.
- We don't allow development of our oil, natural gas, or other energy resources
- We ship off jobs and manufacturing.
- The people who previously earned good incomes from those manufacturing jobs now have no jobs or lower paying jobs.
- They no longer purchase as much from local businesses who cut back on their staffs.
- Homes that were being purchased by those people are being foreclosed.
- The banks and financial institutions who wrote mortgages on those homes lost big time.
- Countries from which we purchase our energy [oil] or now have our manufacturing and jobs, send back money to bail us out.
We haven't lost a thing! Have we?A little less than a year ago I wrote:
As a nation, we have "chosen", increasingly, to not have control in two strategic areas:As we move jobs, facilities, and... finally... ownership elsewhere, we lose control of our destiny. At what point do we decide that maybe there is a limit to this expedience?
In the area of energy, we have chosen to stay wed to oil and natural gas as our mainstays for energy rather than nuclear power, coal or alternative fuels. As a result of that choice, we "outsource" a significant amount of our energy resources.
In the area of manufacturing, we have chosen to seek lowest cost labor as a panacea for remaining "competitive". Consequently, we have "outsourced" a significant portion of our manufacturing capacity to countries such as China.