Tuesday, October 4, 2011

Response to 10/5 Podcast

Banking and marketing are both very important to move forward.  I really like the examples used that describe owning a pizza place and an ice cream place.  These are great examples that show how the business world has recently changed over the past few years.  There is a rise in capitalism and a rise of monopolies.  This may be a good thing and from the podcast you hear that many excellent economists have said that there should only be about 3 companies in any major form of business anyway.  There is a new form of business and I agree with how it works; that the actual returns in the "financial markets" will return over 3 to 4 times as much as the old business would return to you.  "Old business" would be considered building things like airplane wings or buildings and selling them in the open market. Finally, close to the end of the podcast, there is a description on how the economy has slowed down to a very slow rate ever since the end of the 1980s, and that is something that could be a slight cause of the Recession that we are still feeling today.  Overall, this was a great audio recording that broke down many aspects of banking and marketing that I now understand much more clearly.

2 comments:

  1. I agree with you, I focused more on other things when I listened to the podcast but you do make good points yourself. I understand a lot more of banking as well.

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  2. I liked the podcast too. I think businesses should be innovative with acquiring profits, however, GE's shouldn't be a subprime lender to creditors who sell bad loans. That led to the huge bailout money GE receive to make up for the capital it had once backstopped for these loans. GE should be concerned with its profits and reinvest into the company. If we still had banking conducted in the "golden era" as the economist referred, we would not have huge banks engaging in risky loans and more faith in Wall Street.

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