BlackRock, a $3 Trillion investment firm and a LP in Venture we have met with is bullish on the U.S.
We agree with Chief Equity Strategist Bob Doll that U.S. entrepreneurial capacity will continue to lead the world, despite the way we see a subprime financial system, or socialistic capitalism, suppressing innovation. Apple and Facebook are great examples of custodians of innovation that have escaped the wrath of Venture Capital and grown dramatically despite (not because of) the traditional playbook of Venture Capital.
I agree with Bob on some of the economics he mentioned, but remain a staunch critic of the deplorable and suppressive role of a defunct financial arbitrage. With a new financial system guiding innovation we could be doing a lot better. Yet our cultural capacity to innovate, despite the flawed economic principles of our financial system, escapes and keeps rising above its arbitrage. But looking inwards, as we have found out, is clearly not part of the interest or risk analysis of many financiers.
- U.S. productivity is “OK and better than lots of other places. Over the next 20 years, the U.S. work force is going to grow by 11%, Europe’s going to fall by five, and Japan’s going to fall by 17.”
- Half of the 2009 stimulus program was “true stimulus” for the economy. What about the rest? “Call your congressman and find out”
- “We face formidable long-term structural problems that make the U.S. less attractive than it otherwise might be.”
- In 1995 the U.S. produced roughly 25% of the world’s goods and services and in 2010, after 15 years that included a tech bust, a terrorist attack and a housing bust that triggered a financial crisis, the U.S. was still producing that same 25% of global GDP
Read the full article here: [Links: The Wall Street Journal]
- The risk profile – not money – determines what innovation can be discovered. — Georges van Hoegaerden - September 16, 2014
- An outlier knows no precedent. — Georges van Hoegaerden - September 9, 2014
- Losing VC money is not our biggest problem - August 11, 2014
- The Long of Facebook - August 7, 2014
- ‘Innovation’ without renewable socioeconomic value is (government) sponsored bank-robbery of society. — Georges van Hoegaerden - August 7, 2014
- Freedom stripped of its paradox is no freedom at all. — Georges van Hoegaerden - July 25, 2014
- 15,000 views on The State of Venture Capital - July 23, 2014
- Triple Threat Founders - July 20, 2014
- If we want to inspire the world with our spiritual leadership, we must stop selling lies to unsuspecting greater-fools. And lead the world by example, with new rigors of excellence we first and successfully apply to ourselves. — Georges van Hoegaerden - July 19, 2014
- Has Venture Capital Changed? - July 15, 2014