Saturday, June 28, 2008

Behind every grave crisis lurks a truly golden opportunity


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Forget Chicken Little. Think “Holy cow!” That’s what you’ll be saying when you see the once-in-a-lifetime deals that are suddenly popping up all over the place, the strategic acquisitions that never seemed possible before and the warehouses of assets selling at massive discounts. Every economic, industry or business crisis inevitably spawns such extraordinary opportunities. You just have to have the foresight to be looking for them... and the guts to grab them. Look, we are not saying you should not worry about the current unsettled environment. Two months ago in this column, we ourselves noted that the era of low cost money was swiftly coming to a close, and that there would certainly be painful consequences for many banks, private equity firms and individual investors. But in our view, this credit crisis is just a financial-sector crunch, not an economic Armageddon. Like all cycles, this one will play itself out in several months or a year – two years at the most. Think of the savings- and-loan debacle in the 1990s, the Mexican Peso devaluation in ’95, the Asian financial crisis in ’97 and the tech-bubble burst in 2000.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2008

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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