Ordinarily, when a business\/industry fails from poor management and\/or (in the case of the banks) overleveraging, what happens? Put aside the issue of what the business\/industry is for a moment. Just ask yourself, what happens?<\/p>\n
You know what happens intuitively, even if you’ve never opened an economics textbook. It is very simple. Entrepreneurs, seeing the mistakes made by those business\/industry operators, rush in to start competing businesses to 1) take advantage of the weakened competition, and 2) operate the business better than the competition having the benefit of seeing their mistakes.<\/p>\n
Under normal circumstances, this process happens in every industry. It is the normal cycle of capitalism.<\/p>\n
But look at what is happening now. Are there any entrepreneurs setting out to start automotive manufacturing businesses? What about entrepreneurs setting out to charter new banks? You already know the answer to that. The question, then, is why?<\/p>\n