Joseph Schumpeter, the legendary economist and political scientist, called it “creative destruction” when a severe downturn ravaged a wide range of industries, sectors and nations – ruining growth, devastating jobs and squeezing credit in the process.
Well, we’ve certainly seen plenty of “destruction” over the past 18 to 24 months; now it’s time for the “creative” part, and it should start sometime early in 2010, when the economy’s healing process begins to make itself felt.
That’s right. I believe the economy is beginning to mend and knit back together. As we all know, the “destruction” has been excruciatingly painful and dislocating, but it has cleared out the uneconomic and unproductive investments and set the stage for steady new growth and sustained capital markets-driven enrichment.