Originally Posted by Sevenfeet
As far as the real estate bubble is concerned, I'm not quite sure how Apple capitalized on this since their core assets are intellectual property, not real estate.
A rising credit bubble lifts all ships, including Apple's.
People flush with loans from their rapidly rising equity.
If anything, Apple had to survive the outcoming of the dotcom collapse of 2001-2003 which you do not mention. If you look at Apple's earnings, most tech companies had problems during this period even Apple struggled initially after several quarters of modest growth. The key of 2001 was that Apple launched both the iPod and the Apple store then during a downturn, which ended up being an extremely smart long term play.
Yes, Apple does well on its own verses the other tech companies, no doubt. But the credit bubble had a lot more customers for Apple's gear than normal.
You claim that "not many know" that Congress brought the country into subprime mortgages in 2005.
Many don't know that, Bush as the outgoing president was smeared by a vengeful Dem Congress not only for political gain, but because Bush took the two GSE's out of their "socialist experiment" and fired both CEO's for bringing both companies to ruin.
I would counter that the roots of all of this began in the late 1990s with the repeal of the Glass-Steagal act, allowing banks to get into the brokerage business, combined with a congress who elected to pass on doing anything to regulate the growing problem of credit default swaps.
Banks can handle the brokerage business as long as it's a separate identity than traditional banking.
Unfortunately the risk taking, like a disease, works it's way up to the top and effects the whole company. I would like to see it re-enacted.
Being the root of the sub-prime mess?, no that goes back to Clinton and his revisions to the Community Reinvestment Act forcing banks into giving risky loans under the threat of redlining. The first mortgage backed security was created later that year by Bear Sterns as a way for banks to dump the toxic loans.
Then in 2005 the Dem Congress got Freddie and Fannie into the sub-prime act right during the height of the bubble...
So basically it was government sponsored corruption of capitalism that was the cause of the problem. The Dems brought the government into the sub-prime mortgage game like bringing a drunk whale (rich person) to a casino. Now we will all pay, with sub-standard socialized health care tax during a severe recession. Wonderful!
Dems are by nature anti-capitalists and certainly anti-business. They are the ones who ripped off the sub-prime poor with loans they couldn't afford, and like blaming Bush, they blame the banks for laws and regulations they created in the first place. They blame everyone but themselves for their failure to understand how things work.
You see, I lived through two real estate bubbles, they normally are a game of speculation for those who can afford to take the risk. It's not for the sub-prime and middle class.
You say that Apple's problem is the lack of a long term established business model. I'd say that no company is immune from change and constantly has to adapt, innovate or die (just ask the US auto industry which has been around for 100+ years). Apple isn't a railroad, telecom or other company with large "cash cow" assets and doesn't aspire to be. If Apple has any advantage over its competitors, it's that drive to continue to innovate and keep ahead of the other guys. Apple is "too dependent on the quality and the creativity of it's people"??? Seriously, that's your argument? When your primary asset is intellectual capital, that's how you keep ahead. Businesses everywhere need to learn Apple's lesson.
No, what Apple needs now to cement itself is buying or creating some sort of infrastructure, it's too dependent upon other countries and companies for it's products.
It's too dependent upon innovation, well that innovation will die when Steve goes, talent is already leaving Apple. Like it did when Walt Disney died.
Apple is really desperate, this is why it's doing what it's doing. Good thing it's successful or it would be another Palm.
Apple needs to cement a market, preferably a infrastructure really bad, that's why it's in the portable music and phone business.
The computer market it has failed in, due to circumstances and earlier mistakes. 10% market share is a failure, 90% or more is successful.
For someone who talks about conservative beliefs and probably believes in American Exceptionalism, you seem to be saying we should all roll over and wait for China and India to pick up the pieces.
No they are happily going on without us or really caring two shits really.
China is the one sucking up the worlds resources, they are to blame for the gas spike because they loaded up on oil before the Olympics, but the smear campaign it was speculators to blame. Some in the media re quick to blame capitalism for everything, why is that? (sure they made some money, but they risk losing too)
I'll close with this, the US used to consume nearly 90% of the worlds resources for the standard of living we experience today.
How the heck can the rest of the world enjoy that same standard of living?
It's only through strength that our country got the standard of living it is spoiled on today.
Even Obama wised up and is sending more troops overseas...the Congress isn't even batting a eyelash.