Why we need recessions
We do everything to prevent recessions and by doing that, we reward unsustainable business behaviour, destroy sound businesses and corrupt generations of future managers.
The unfair competition

Image: flickr/Arenamontanus
I was always wondering how a sustainably managed business could compete against a cancerously managed business. Imagine for example a fast expanding company with hyped executives. They squeeze out all existing values (hidden assets and reserves, unrealised gains, customer loyalty, product pipeline, quality, employees, etc.), take high and irresponsible risks and thus generate much more profits in the short run than a sustainably managed business. After a certain time, shareholders of the latter business will look enviously to the much better performing business – and ultimately sell their company to the more successful management. Read More