Wednesday, September 19, 2007
Playing With Fire
Read this nice Guardian piece about Northern Rock, the credit crunch, and it's management.
The point is simple: harnessing markets, networks, and communities can lead to explosively powerful outcomes. But it can also lead to explosively powerful declines.
Players who are employing edge strategies - like Northern Rock was, sourcing funds from the markets, rather than from depositors - must have new DNA, to deal with the volatility and turbulence of markets, networks, and communities. They can't be managed...like Northern Rock was.