The Mt. Gox collapse is still in the news and probably rightfully so. It is now in the front page news more than the Enron collapse ($62 Billion). And it is grabbing headlines like the Bear Sterns collapse did in which the New York Federal Reserve Bank invested (err…lost) 25 Billion of taxpayer money plus untold billions in stockholder losses. And then there is the collapse of Lehman Brothers
Washington Mutual was another one.
Now that is just the most recent banking scandals. Look back a little further and we see Drexel Burnham Lambert in 1990 “involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the fifth-largest investment bank in the United States.” And of course we shouldn’t forget the savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) which was the failure of about 747 out of the 3,234 savings and loan associations in the United States.
Swallowing Camels and Straining Out Gnats
When major news agencies such as Reuters present skewed reporting with headlines such as Mind your wallet: why the underworld loves bitcoin I think they do a serious disservice to their readers and to the general public. Our country is facing far larger criminal behavior that is still rampant in the banking industry and by ignoring it, main stream media publishing slanted articles like Reuters does borders on financial terrorism. Each day the Federal Reserve pumps billions into a failed banking industry to prop them up with “quantitative easing” while their executives take home ever larger bonuses. The Federal Reserve was spending 85 billion per month.
Bitcoin presents all of us the opportunity to try a different course of action than the one we are on which has produced nothing but banking collapse after mortgage collapse after tech collapse. Very soon we will have a bond collapse, a stock market collapse, and the resumption of the real estate collapse – the perfect storm of financial collapses. Bitcoin is a way out, as are other things like gold and silver. Moral of the story: beware the FUD (Fear Uncertainty Doubt) propaganda of the main stream media.
Although any new venture carries an element of risk, an entrepreneur looking to open a restaurant faces additional challenges unique to the industry. A 2005 article in the “Cornell Hotel & Restaurant Administration Quarterly” by Ohio State University professor H.G. Parsa estimated approximately one in four new restaurants fail in the first year, with the number increasing to three in five over the course of three years. With such statistics, restaurateurs should carefully evaluate the risks prior to planning.