Any excuse to watch a bit of Monty Python!
Anyway, I have been chatting to many people over the past week about the current financial situation and the Lehman nightmare in particular and I honestly believe that whilst absolutely dreadful for many individuals involved, a crisis such as this usually needs to happen.
Markets need to re-adjust, be it financial, housing or others and the surge of talented employees now on the market, combined with lower property and business service costs provide an opportunity for many businesses to expand, hire people they wouldn’t have been able to attract at one time and get their own businesses in better shape.
- In the same way that the financing problems of the 1980s created the junk bond, so this crunch will create a similar kind of entrepreneurship
- Unravelling the financial assets of organisations like Lehman Bros will provide a source of immense profit for organisations with deep enough pockets and sufficient smarts to find the value
- Financial institutions have traditionally been the most enthusiastic purchasers of enterprise technology. Their efforts to cut costs will provide new opportunities for things like Software as a Service (SaaS), or service bureaus like what telecoms companies use for billing services and other operational support services
- Bankrupt bank servers, storage appliances and networking gear will come on the market at rock-bottom prices and provide infrastructure for the next wave of web start-ups
- You will have a number of independently wealthy people without things to fill their 100-hour work weeks. Some of them will seek to finance productive businesses rather than just sponsoring an idle WASP lifestyle
You have a surplus of skills: IT professionals, quant / math freaks, economists and former rocket scientists – all of which could be useful in coming up with a killer technology application or web service. Think about it this way – former Morgan Stanley computer programmer Joshua Schachter came up with del.icio.us
Some interesting points about why change can be a good thing.