The Online Investing AI Blog

Frozen Economy by lrargerich @ Flickr

The Fed’s Beige Book business survey, which reported that the economy is improving “modestly” the last few weeks. (You can read a report on the Beige Book at Forbes.)

The survey looks at economic condition in 12 markets. A total of eight of those markets are starting to show signs of increased economic activity.

That’s a little silver lining. The report also indicates that hiring remains weak and may not reach past levels in six to eight years.

That’s right: six to eight YEARS.

“But wait,” I hear you say, “I thought you said there was a silver lining. People losing their jobs and struggling to find work isn’t good news.”

You’re right. It’s not good news. At all. But, bear with me, because there is positive news in this trend.

All these people who are out of work aren’t dumb. They didn’t lose their jobs because they were stupid. In fact, in most cases, these folks lost their jobs because their bosses were stupid. The CEOs, bosses, and managers were the ones who invested their company’s resources poorly. They bet on bad investments. They got caught in bubbles.

And guess what? These bosses probably still have their jobs! This means all the smart people are going to start new businesses and hire all their smart unemployed friends.

If their ex-bosses are lucky, they’ll create new products, or start new industries. But if the old bosses aren’t so fortunate, these smart-ups (as I like to call them) won’t be just their ex-workers, they’ll be the new competition.

And you and I and the rest of the economy will be better for it.

Related posts:

1. Seeing the Silver Lining
2. The Opportunity of the Economy
3. Move Your Own Damn Cheese: Five Business Book Lies
4. Is The Job Market Finally Turning?
5. Facing Down Your Job Insecurity Complex

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