Where’s Money Going to Go to Work Next?

Everywhere I look the media appears to be screaming about innovation. Publications lament the lack of innovation over the last decade. Where are the substantive advances in science and technology? Where are the new energy sources? Why aren’t business leaders smart enough to ward off failure? Why? Why? Why?

I have a thought on this topic. I think there’s been some significant innovation over the last decade. It’s just that the majority of it has been in the finance industry. The wizards of investing invented credit default swapping. They invented the collateralization of mortgages. They invented stuff out of thin air that made a lot of people, a lot of money.

It’s no wonder there haven't been significant advantages in many other industries. If you want to ask “why”, ask why would people have invested in anything other than the vehicles that offered the highest return.

Now, many people are sitting around and lamenting our current situation. Many people ask how we allowed ourselves to get here. It’s pretty simple; the promise of easy money. Human nature and our capitalist system being what they are; money goes where it believes it will be most amply rewarded.

Well, the house of cards collapsed as it periodically has over the last few centuries since the invention of the limited liability corporation. Our economic engine is resetting itself. It appears that the indicators that economist said would indicate the bottom of the recession have all arrived. One of the more significant, banks raising capital on their own, is starting to happen.

So, the big question now is, “Where is money going to go to work, now?”

It’s time to start looking around. Do your homework. Do your research and let’s put our money back to work; because after all, new jobs are a lagging indicator of economic recovery.

So, look for the opportunities to invest in revenue generating assets and we’ll have America and for that matter the world back at work, where they’re supposed to be.

Gayle Turner ><((">