Failure is not an option, right?
Then why is Lehman Brothers being allowed to fall apart? Why hasn’t the Fed stepped in to prevent another Bear Stearns? What separates a failable company from a non-failable one?
In 2004, Robert Kuhn produced a show called “In Search of China.” It chronicled the life and times of Chinese residents that were adapting to new market conditions.
In one of the vignettes, the camera crew interviews the employees of a sugar factory that recently went bankrupt.
It was the first business allowed to ever go bankrupt in the past 50 years, vanishing into nothingness. This concept was foreign to many of the workers as the state had always bailed out or subsidized failing companies in the past. In fact, unemployment was also a foreign concept and prompted several to question whether they should commit suicide.
Thus, the recent comparison by Jim Rogers (video) – the US is more communist than China – is not only germane, but increasingly accurate.