Sunday, August 5, 2012

The Cause of the Crash of 2008 and the New Business Project

What really caused the crash of 2008 was the lack of businesses able to absorb investment money.  This is the flip side of the problem of too much money existing for the present state of the world economy.  Because there are not enough companies to soak up the money available for investment, collateralized debt obligations (CDOs) were created to soak up the excess money.  The CDOs were time bombs waiting to explode and take down all who bought them.  The excess money is presently rattling around in derivatives, making them very dangerous.

I propose a New Business Project within the Texas Ascendant Campaign.  It is important that we have some focus on the creation of new businesses.  The problem of excess money bouncing around the international capital markets is an issue that should also be addressed, but not in this article.

There are plenty of organizations encouraging entrepreneurship.  The Ewing Marion Kauffman Foundation is one example.  The Institute for Innovation & Entrepreneurship at UT Dallas is another example.  But we need to focus on new business creation in the many things we do.  For example, our schools have a big push on science, but we would be better served by pushing business education instead of science education.  We desperately need more business owners than we need scientists.

Areas of special focus for Texas could include the following:
  • Software Products
  • Manufacturing
  • Banking
  • Investment
Texas can be the engine that pulls America back on track.  Let us build a stronger Texas for a stronger America.


The following are related articles
North Texas Industrialization   Tuesday, May 5, 2009
The Exploitation of Innovation  Saturday, March 13, 2010
Exploitation, Not Innovation  Sunday, August 5, 2012
Global Surplus Capital   Thursday, August 9, 2012

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