The tree of capitalism is watered by the failures of the unfit and the liquidation of the overleveraged
Some thoughts and inputs that activated some neurons in my brain that lead me to ask #claude (#opus-4.5)
“Can you come with a couple of variations “The tree of liberty has to be refreshed from time to time with blood of patriots and tyrants” in the context of health of financial markets and companies and assets being propped up by the fed and… so on”
And that is where I got the title of the blog post. I was actually trying to reply to a bluesky post (Yes thats a thing people use).
And then I started drawing blanks so i found these quotes that were relevant to the topic. This will help me close the loop on this thought. Until I can write using my own words.
Joseph Schumpeter
“Creative Destruction is the essential fact about capitalism.”
“Recovery is sound only if it does come of itself. For any revival which is merely due to artificial stimulus leaves part of the work of depressions undone.”
Milton Friedman
“Losses were at least as important in weeding out failures as profits in fostering successes. Let government succor failures, and we shall be headed for stagnation and decline.”
Andrew Mellon
“Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. It will purge the rottenness out of the system… Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.”
Warren Buffett
“Only when the tide goes out do you discover who’s been swimming naked.”
Nassim Nicholas Taleb
“You cannot make profits and transfer the risks to others, as bankers and large corporations do… Forcing skin in the game corrects this asymmetry better than thousands of laws and regulations.”
Alan Greenspan
“If they’re too big to fail, they’re too big.”