Disruptive Strategies Inc Managing Director, Rahim Thawer Posts This Week: The Banking Bubble Bursts.

The Banking Industry is on the verge of changing forever due to various economic factors and financial models that had been created in the last decade to create cheap monies and massive profits for bankers and their investors. The ideology and concept of free money cash flows was embraced by most banks due to simple supply and demand economics and backed by the Industrialized America.

This refinement of cheap money was not only led by various government entities but creative bankers exercising their newly formed simulations which gave way to the new world of power and higher profits. It is due to this transformation that the companies grew exponentially and dominated the global presence spreading awareness of their products and services. This notion gave birth to societal segregation and fueled the economy even more creating more wealth.

Today, this model is disintegrated and is obsolete! No longer can the economies of various industries support it and thrive. This model was shattered equally by investors as well as the consumers. There exists surplus of anything and everything including debt, and all this can very well be an opportunistic buy, but is it? Are we making the same mistakes and looking at these existing ventures and projects as opportunities just because they are up for sale for pennies on the dollar?

There may very well exist plenty of opportunities for the right investor and less and less ventures are getting funded as we see many banks go bankrupt and close their doors forever! Entrepreneurs can no longer use ancient traditional channels to conduct their business activities and seek to raise capital for the growth. The ways of analyzing projects has already changed, at least in the bankers mind. Perhaps this is the reason why we are experiencing illiquidity in the marketplace. Change is what we had asked for, and change is what we got. This transformation is going to revert us back to the old days where credit was limited and so was capitalism. Our future is now in the hands of the creative minds of tomorrow and innovators who will recapitulate the system.