It’s almost been a year since Bear Stearns hit their speed bump head on. With the thoughtful oversight of the Federal Government, it was brokered, and the entity saved. Then along came AIG, CitiGroup, Fannie Mae, Freddie Mac and others. The only one allowed to fail was Lehman Brothers, which most believe was a huge mistake. Today, more and more companies are bellying up to the “too big/too important to fail” trough.
Is this a trend?
One thing we must realize in this unfolding story is the importance of the media and PR. It shapes perception, policy and now the economy. Yes, the economic stimulus is analagous to Willie Sutton’s famous response to the question why he robbed banks. Sutton’s said, “Because that’s where the money is.” Today we realize the banks no longer have the long arm on the money supply, its the Federal Governement.” And if your business or industry is challenged in the current economic environment, you need to navigate your way to where the money is, a.k.a. the Federal Government. But here is where this big pot gets really dicey. You need to talk their language. What is that language? It’s simple.
- Jobs - save them regardless of the price
- National Security - energy, defense…
- Too big to fail
So as you scour vaious media, you’ll begin to see how companies are positioning for bailout and stimulus funding. But more importantly, in too many instances the government will play an evolutionary role with some stamped, “Failure DENIED” on the paperwork.
