America, Inc.?

So the government is now in the banking and insurance business. Are autos and imports next?

Through the stimulus plan and interventions in the markets the government is now the lender, spender, and investor of last resort. In order to keep the financial gears greased the Fed has been manning the pumps.

But I hope that somebody over there has studied their history, because all this government intervention is starting to remind me of Japan, Inc.

In the ‘80s, the Japanese government was an inside partner to a whole host of critical industries. They thought that by careful planning and selectively intervening they could manage their economy to a better tomorrow. At first it seemed to be working. But around 1990 the wheels came off and the Japanese economy has stagnated ever since.

I understand that lawmakers want to do something, and some kind of new regulation is surely needed. But I don’t think America, Inc. will be any more successful than Japan, Inc. And I really hope the folks in Washington and New York remember.


Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T21:13:52+00:00 September 24th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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