Thursday, February 04, 2016

Goldman Sachs Says It May Be Forced to Fundamentally Question How Capitalism Is Working

Goldman Sachs Says It May Be Forced to Fundamentally Question How Capitalism Is Working - Bloomberg Business:
"...In other words, profit margins should naturally mean-revert and oscillate.
The existence of fat margins should encourage new competitors and pricing cycles that cause those margins to erode; conversely, at the bottom of the cycle, low margins should lead to weaker players exiting the business and giving stronger companies more breathing space.
If that cycle doesn't continue, something strange is taking place.
Needless to say, it's not every day you see a major investment bank say it might have to start asking broader questions about capitalism itself. "

No comments: