Thoughts on Bailouts

Capitalism makes success possible for those that reach forth. The possibility of failure is necessary to the equation.

"Success" ceases to exist when gluttonous industries begin perceiving their survival as a right, not a privilege.

Make Way for the 'Economic Pearl Harbor'

Warren Buffett voiced support for Henry Paulson's $700 billion proposal to buttress the buckling US financial system, calling it "absolutely necessary." I found that surprising. The move certainly saves our asses for the next couple of weeks, but we're facing deeper, potentially fatal problems with our system if its checks and balances (the market, essentially) can no longer support it.

Regular injections may sustain a diabetic, but it's hardly appropriate for the powerhouse of global consumption.

Now for some comic relief.

"It's nice to have a lot of money, but you know, you don't want to keep it around forever," Buffett said. "I prefer buying things. Otherwise, it's a little like saving sex for your old age."

He said sex!

Buffett recently announced intentions to infuse Goldman Sachs with $5 billion. The latter must be relieved beyond measure. If Berkshire Hathaway were a blanket, I'd be trying to crawl into it too.

(Thanks, Benj, for the Bloomberg link.)

The Changing Face

We were sitting across from each other on the couch late last night, tapping away on our Macbook Pros, when Benj glanced up at me and went, "Ang. Ang."

"Mm?" I looked up from what I was doing.

Benj cleared his throat for dramatic emphasis. "As of a few minutes ago, investment banks have ceased to exist."

"Mmm." It didn't much sink in. We went to bed, and around 8:30am this morning I woke up drenched in chilly sweat, writhing from a dream where the banks distributed all my funds to an evil female landlord. Everything was empty: the savings accounts, the IRAs, the investment fund...

"The banks --" I sputtered, "the banks..."

"It was a dream," said Benj. He made me mint hot chocolate, and waffles covered in banana, and sent me off to work.

For ye marketers out there, feeling all safe and warm, Search Engine Land is publishing 11 ways the Wall Street meltdown affects digital marketers.