Bailout or no Bailout

I try to stay out of politics on the blog as I try to discuss leadership issues. On this bailout, aka rescue plan, I have to draw a fine line.

The big talk over the last week has been about the recent bailout situation, which I find interesting. It is a little confusing as the Republican and Democratic parties seem to be split among themselves, some saying if we dont have a bailout, the end is near. While others say, no bailout is needed.

There will always be ups and downs in the economy. Those that are older, have seen several slowdowns and recessions (1981-1982 comes to mind); those younger, it might be your first one. When we are on an up, there will be a down. When we are in a down cycle, there will be an up down the line. This is what is called capitalism (i.e., Adam Smith's invisible hand). Some government intervention can minimize the downs if done correctly (although we did see during the Great Depression, government intervention caused the down to more of a downer). Is this bailout plan a good government intervention or too much intervention that will delay the inevitable? In a business that needs credit to acquire companies, I definitely see a reduction of available credit. It my view, something needs to be done, but not sure about this existing rescue plan, as I do think there are some other alternatives.

This brings me to the issue of leadership in this situation. If you have a solid service or product, you will be fine in ups and the downs. If you do not have a solid business, focus on building up your base in this situation. Remember: There are opportunities in both cycles. If you have more strategic control (a differentiator that keeps the clients to your services/products), you will be terrific shape. Be smart. Don't be too risky. Look for opportunities that leverage your strengths