In the technology sector, poorly-run businesses don’t last long. They fail quickly only for their assets to be acquired by better stewards. The paradoxical truth is that the technology sector gains strength from periods of weakness.
It’s something to think about with banking top of mind. Failure in banking has become a dirty word. Unknown is why. Figure that the banking system overall could become sturdier if the weak links in the system were routinely purchased by better managers. But rather than allow market forces to work their magic, regulators continue to pursue “policy” as a way of fighting the very failure that so routinely improves the industries in which it’s allowed.
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