After the financial turmoil information crisis worries

With the bankruptcy of Bear Stearns and Lehman Brothers, rapidly disappearing within investment banking in just a few weeks, building a global financial capitalism has come tumbling down.

After the financial turmoil: information crisis worries

Author: Instant rain observation of the contemporary Manager column, November 2008

With the bankruptcy of Bear Stearns and Lehman Brothers, rapidly disappearing within investment banking in just a few weeks; plus nationalization of AIG, United States House of representatives has just passed $ 700 billion bank rescue packages and central banks jointly injected huge amounts of preventing runaway financial initiatives, every indication suggests that building a global financial capitalism come tumbling down. Former International Monetary Fund Chief Economist Ken. Rogoff saysa substantial capital injection operations only temporarily block out of the crisis, is not enough to end market pressures, financial fragility of incredible.

However in the meantime, 2008 national day Eve, Nanjing, China Internet Conference was held as scheduled for the year. Video, SNS, community, search, prosperity and the green landscape; even because this year's move to the new development zone, Nanjing new stadium held this session than in previous sessions, to be held in Beijing is all the more brilliant, more Grand. Seems to be the financial turmoil is far away from us, it seems that all financial whine has nothing to do with the Internet. If indeed this is the case, we should celebrate our find a sheltered harbor.

Financial crisis directly affects global demand, while the contraction in demand quickly showed damage to the export and manufacturing sectors. Although GM and performance of the first 9 months of the year in 2007 than Toyota, to regain the automobile industry's dominant position, but under the influence of financial crisis on the demand, it remains ready to slash production in Europe. And the United Kingdom pointed out that the FT's Lex column,depressed demand for the formation of the financial turmoil will soon result in Korea (as a country dependent on exports) of enterprise crisis and the problem of unemployment. As the financial crisis intensifies, it hurts in the further deterioration of the real economy, General Electric financing transactions with the Buffett shows that even higher credit rating giants of enterprise only to harsh terms of loans, not to mention SMEs. Now, the credit crisis far not tied to Ma "winter on" China zheshang Fujian merchants within the meaning of, but a question of a global common.

Information industry is essentially a service industry, demand for information industry always comes from the tradition of manufacturing, banking, transportation industry. So since the financial crisis could harm to these traditional industries, also pose a great threat to the information industry. Some may say that the Internet is independent of the information industry, so what does it become? Perhaps under the entertainment industry. When economic downturn or even recession and a sharp contraction in demand when the entertainment industry can you survive?

Investment banks lend each other intensified the pace of deterioration of the financial crisis and globalization the United States issue quickly evolved into a global issue, the financial crisis on the real economy's impact spread rapidly and spread. Globalization was a Gospel of human economic, now has become a spreading financial plague of rats. And similarly, the Internet is a global, it is the basis for the globalization of information, has been playing Gospel of role of information industry. In the era of IBM, is the science of information industry; in the era of Apple and Microsoft, is a tool of information industry; and to the Google age, the information industry has become an integral part of our life itself. Making life and work of all information on the Internet, but Google still spared no effort to promote business and personal application of the Internet, it's not an optimistic situation; Islands retain information in part on growing.

United States famous Hou modern doctrine thinkers Charlene spretnak in she of real of revival under in the said: "modern social to eyes concentrated in material expansion of process Shang, it assumptions social in the all social and personal of problem are can by material products of constantly growth and are solution; but it by brings of many consequences, even does not said is full destructive words, is very problematic of". In this connection, both before the subprime crisis on derivatives of "financial innovation", but also on the innovation in the development of the Internet model, are reflected most vividly.

United States financial sector's total debt as a percentage of its GDP, 1980 is 21%, and in 2007 was 116% (this percentage does not reflect the growth of GDP itself), which are predominantly financial company formed between debt. All the way to the financial turmoil on the eve of the arrival, all the emerging countries are still listening to the teachings of Western financial institutions and markets, these institutions and the market has now become a collapsing Domino. What process of industrial growth and the growth of derivative financial products, investment growth in the banking sector the most similar? There is no doubt that the Internet. And domestic Internet almost without exception are in accordance with the United States pattern-like painting of gourd to build up, regardless of the search, portal, video, community.

When science and the Internet industry tool "innovation" to turn into a boring after the gamble for entertainment and the productivity of capital, was seen in gold mining is not entirely, what I see is the abyss of human greed. Through the Internet, Huxley predicted in the brave new world 1932 science fiction scene is clearly rendered in front of us:people endless desire for entertainment will be drowning in boring truth in the ocean, our culture is full of sensory stimulation, desire and irregular game of vulgar culture. Click on the League of values, bid ranking, advertising, video sharing, Web X.0 forth Industrial exhaust for almost everyone in the chain to create a no real manufacturing and production economy, used solely for the consumption of information that can be based on, or even simply spam and foam information.

If the information is to maintain a basic survival of living organisms, so this kind of "innovation" for criticism. But it is terrible, contrary to the facts and; this deviation from the real economy of "innovation", and the cause of the subprime mortgage crisis and the global economic turmoil "financial innovation" the same. This innovation will result can be described with the Matthew effect of exponential growth, regardless of what happens after what is this growth, growth.

Thanks to Hamilton for his tireless efforts and the profound lessons of the great crash of 1929, the financial sector has a Central Bank that straw; information industry has what? IBM, HP, Intel, Microsoft, Google, information industry to date is still disjointed, the feudal strife of the world. Once information crisis, not frightened consumers and customers first, but industry leaders and service providers. Now the bow like banks, already highly competitive IT Giants maybe at that time had no mood for mutual support and care.

"There are no financial, modern economy cannot survive". Without the Internet, do we have such a high degree of information life extend? Do we know how to live? Don't think this is a Songting frightening words; a year ago, if you tell anyone: investment industry will disappear, financial capitalism will be bankrupt, there cannot be a person believes. Of the Black Swan would have told us that nothing is truly impossible: Turkey before the twist off neck, feeding experience will tell it is the most friendly friend. None of the information industry "fed", wait until the crisis really falls on that day, who will act as a patron saint of the information industry? Who provide insurance for potential collapse of the Internet and the information industry? Who has the ability to take responsibility for the crisis? We should be vigilant, and when that day comes, perhaps no longer just be a typhoon, a memory of the earthquake of spam, virus or a wave of tsunami, and there could be a protracted ice ages.