In my last post I spoke about Timothy Sloan, CFO of Wells Fargo, on avoiding any investments which looked like a spider. He considers them too complex – and walks away.
In a similar vein, acclaimed economist and innovator from Peru, Hernando de Soto, focused on your \’paper being real.\’ At the recent SIEPR Economic Summit (Stanford Institute for Economic Policy Research), he talked about the fact that our passports must be equated with one\’s identity. It\’s real.
The paper (document) = You
And so for America to aright its financial troubles:
The paper (our dollar) = Something real.
Our dollar cannot be wrapped up in something that doesn\’t exist. It has to mean something; it has to be backed up by an actual \”there.\” A house, a car, a boat…
That was the substance of his whole talk. It was simple, smart and true, as is most wisdom. While it was quite embarrassing, it was well-needed. Our country, America, needed to be told this so that we can get back to our heritage of producing value.
How have we gotten so far away from honest, true business partnerships? When did part of our financial system become fabricated?
Yet Mr. De Soto was so gracious with our mistakes. He noted the wonderful legacy we come from as a great country…and that we can become great again.
Complexity is out; simplicity is in. I hope we can become a butterfly and soar again. Let\’s take Hernando De Soto\’s advice, and make our paper real.