May 31, 2010
Nassim Taleb called the 2008 recession and wrote The Black Swan.
He argues that you should look at systemic risks (not individual, one-off risks).
- Look at the bridge’s engineer, not the last truck that drove across your collapsing franchise.
- Don’t look at the individuals, the brand, the area manager…
WikiFranchise.org was created to reveal those structural risks that cause 99% of the problems.
February 11, 2009
Anyone that throws cash at a franchise now (starts, renews), has lost their mind.
- Please note: No one invests in a franchise. You simply rent an alleged proven system and a trademark for some period of time.
- You may think you own something of value but that is a type of sleep-walking that you will awaken from.
- How long will you continue to feed a corpse (ie. continue to make payments into an already collapsing fraud)?
Nouriel Roubini and Nassim Taleb know what they’re talking about, notwithstanding the pettiness of people like Paul Krugman. I did study political economy and using communism as a straw dog argument is unbecoming anyone that calls themselves a professional economist.
- Unless, of course, bringing Monty Python in was Herr Krugman’s idea of a joke.
- That may be a sense of humour not shared by the +500,000 U.S. laid off workers last month.
Nationalize banks (guaranteeing bad debts and a “bad bank” won’t work).
- Don’t reward known thieves and reckless risk-takers.
- Cash is King (keep what you’ve got).
- Compensation IS the source of the problem.
- It’s only started (massive deleveraging still to happen).
- The recession could be 10 years long.
- Obama’s bailout plan is a BUST.
And don’t listen to the media morons.