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>Welchian capitalism This is a good phrase to describe a certain kind of late-stage industrial corporate strategy. I was at IBM when Sam Palmasano was doing t
by crmd 2y ago
>Welchian capitalism
This is a good phrase to describe a certain kind of late-stage industrial corporate strategy.
I was at IBM when Sam Palmasano was doing the same thing at big blue. People thought he was a genius because of the short term business results. But in retrospect he was strip mining the company, selling the next two decades of revenue this quarter for pennies on the dollar.
I’ve seen shitty CFOs do the same thing at small and midsize tech startups. I used to say name a company that cost cut their way to IPO but nobody listened to me.
- lurking15 2y ago> Welchian capitalism It's a form of stock valuation chasing that's fueled by currency devaluation and inflation from government money policy. When the government forces interest rates low (whether it's 2% but especially when it's 0), people start pushing their money into whatever equities that promise the highest rates. Jack Welch is just "selling yield". Tons of examples when this has been shown to be disastrous in history and always precedes the fall of once-great economies. Not capitalism, unless you want to call it crony capitalism which is of course downstream of government.