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By William Bonner and Lila Rajiva Remember
explaining to your mother why you’d taken some (ill-advised) action
because all your friends were doing it? And remember her stock
response? If all of your friends jumped off a bridge, would you do it,
too? she would ask, hands on hips and voice rapidly escalating to tones
of incredulity. Unfortunately for you and your mother—the answer
probably would have been yes. What’s more, it probably would still be.
It seems we humans never outgrow the powerful urge to go along with the
crowd, even when the crowd’s decision will result in financial loss,
humiliation, physical injury, or in extreme cases, death.
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This week, Dick Brown, author of "How to Raise Money: Winning the Game ", answers a question elicited from the recent difficulties facing hedge funds. Speculations are that slumping real estate markets will also cool off the mergers and acquisitions binges that have allowed hedge funds to return such large profits to their investors.
In a practical sense, what happens in the rarefied air of the hedge
fund “swingers” probably has little direct effect on you and your
venture, since you’re probably way too small to play in their games.
However, there is always significant “trickle-down” in the financial
world when the amount of ready capital begins to shrink, and as major
shock waves begin to roll through Wall Street, London and Zurich. This
decline in available capital can result in a recession (or worse).
This not only makes it harder to find business loans, but it also may
be a while longer before you can sell your company at a tidy profit. |
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Tuesday, September 4, 2007
LAS CRUCES, NM – A team of U.S. and British architects and designers, accompanied by officials
from the New Mexico Spaceport Authority (NMSA) and Virgin Galactic, will unveil the design
renderings of Spaceport America at a press conference Tuesday, September 4, in Las Cruces, New
Mexico. Construction on the 100,000 square-foot hangar and terminal facility is scheduled to begin in
2008. |
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