Let Us Give Thanks, America, For Our Entrepreneurial Spirit
By Bradley Blakeman
FOXNews.com
During this week of Thanksgiving, we must all remember that our country's greatest strength rests with our people and their ingenuity, creativity and the freedom to control their own destiny.
The American people
have always risen up to overcome any adversity.
Even though we remain in the long shadow of a
deep, protracted recession, this entrepreneurial
spirit still offers the best hope to lead an
economic recovery.
Our federal government has been active in its
attempts to spur job growth. The extent of its
foray into the private markets has been
worrisome while only mildly effective.
The federal government has essentially nationalized some of America's largest companies through recent investments in GM, AIG, Chrysler, Citigroup and many other financial institutions. Yet the real unemployment rate is at about 18.5 percent. It's higher today than it was when President Obama signed that $787 billion dollar stimulus in February, 2009. More than half of the TARP funds have not been repaid and banks continue to tighten lending standards for commercial real estate lending according to the October 2010 FRB lender survey.
However, my disappointment in government has
been ameliorated by my new found confidence in
American capitalism. As Ronald Reagan so
eloquently reminded us almost 30 years ago,
"government is not the solution to our problem."
Just when government proves incapable of
reviving the capital markets, the private sector
gets to work to solve the problem.
The distress in the capital markets and the
contraction of traditional credit has given rise
to many online financial solutions aiming to
help return liquidity to the capital markets.
These do for America what our government has
not. These new online liquidity solutions
include The Receivables Exchange, which creates
an electronic market for small businesses to
access financing for their receivables, and
Second Market, which helps investors and
individuals obtain liquidity by marketing
illiquid assets such as bankruptcy claims and
shares of private companies.
A third such innovative new company is Reliquid
Capital Network,
www.reliquid.com. Founded by Marcus J.
Mollmann, Reliquid combines the latest
technology with the power of networks to finance
commercial real estate. Reliquid has created a
virtual marketplace for owners to access debt
and equity for commercial real estate by
aggregating many different capital sources
willing to lend and invest in real estate into
one central location. Reliquid is partly a
"dating" website in that it quickly matches a
real estate owner seeking capital, known as a
Capital Seeker, with a willing source of
capital, called a Capital Provider.
"On our Web site, a Capital Provider can quickly access relevant information about a deal and a Capital Seeker gains direct access to interested capital sources," explains Mr. Mollmann. "By the time a Capital Seeker and Capital Provider meet through Reliquid, they are already a match."
The goal of Reliquid's platform is to expedite financings and lower transaction costs, making capital more readily available for those who need it. So far, Reliquid has attracted capital sources representing over $91 billion in assets under management ranging from large banks to small funds and high-net worth family offices. And its capital network is growing at 5 percent per week.
Those numbers hardly sound like capitalism's epitaph, but instead, firms like Reliquid may be just the type of productivity boost our economy needs.
Such is the spirit of America's entrepreneurs and the resolution of our entrepreneurial spirit that these new ideas may help in the rebuilding of our economy.
Let's look to our
entrepreneurs to lead our recovery and say a
word of thanks to good old fashioned American
capitalism.
Bradley
A. Blakeman served as deputy assistant to
President George W. Bush from 2001-04. He is
currently a professor of Politics and Public
Policy at Georgetown University and a frequent
contributor to the Fox News Opinion.