How long before Cable, Telco and Wireless realize that “metering” charges for Content, not controlling both Content and Broadband infrastructure, offers the most profit opportunity, Content diversification including Services and Cloud applications, and relief from constant Congressional and regulatory, and now consumer complaints about monopolies?
Maybe Goldman Sachs did nothing wrong a la Gordon Gekko, “Greed is Good,” but they certainly turned admonitions to Calpurnia-Caesar’s wife- regarding appearances, into a perception of being a high-priced hooker. From widest admiration into Excess’s whipping boy overnight.
Since when are we shooting the messenger-the Standard and Poor’s and other Investment Rating organizations- for saying what needs to be said about not only U.S. Bond and Investment Ratings, but those of other countries as well? We whined about how the Rating houses seemed to be asleep and uninformed about risks associated with CDO’s and Derivatives, securitized Mortgages and other obligations, now we whine again when they try to do their job. But, let’s not be confused, we need more, not less transparency in these huge, I mean really big- Sixty Trillion plus-marketplaces. That’s Trillions with a big “T” folks! No wonder Buffet and the banks are scared to death that being forced to “mark to market”- value at real market prices-would cause huge losses, and drive many banks out of existence.
Financial Reforms in Congress-That’s why I feel that regulation requiring much higher levels of equity capital-not debt, not off-balance-sheet-financings- pure equity capital requirements that increase as financial institution size increases, are the best way to force Prudent Man investing and Risk policies. Financial institutions will ALWAYS find ways to take risks and manage money profitably; they have for thousands of years, and yet still provide admirable Rates of return to shareholders. That way “too big to fail” becomes a vestige of the past; failures will occur, but losses will always be covered by shareholder and investor equity, not depositors and taxpayers. limiting Leverage by requiring limits of ten percent or less in any one investment, or in any one class of investments, and equity reserves of ten percent-increasing to twenty percent for institutions above five hundred billion in “assets” -would prevent the complete failure of any one investment from doing more than eating up shareholder equity, allowing the institution to survive, even if under new management. This way, banks and financial institutions of all design and philosophy, including insurance companies, could design investment products to meet the needs of the marketplace and world trade, without putting taxpayers at huge risk.
Google’s “everything in the world” digitization effort looks even more prescient in view of the current and anticipated demand for E-readers and other “convergence” devices -AAA-AnyThing, AnyTime, AnyWhere, that will deliver multiple streams of Content-voice,data, entertainment to you on multiple devices at the same time wherever you are. Now, organizing all that data into Internet-based education and training in the “Cloud” offers more opportunity than ever.
School? School is where the E-reader happens to be. Textbooks and curriculum? Internet-designed and based in Cloud applications that allow Learning (instead of Teaching), anywhere you happen to be, at any time you want to be learning. What’s not to like? (See my article, “They Can ALL Be Geniuses”).