As noted here last fall, one of the key dynamics that is delaying the recovery of financial markets is the resistance of many societal forces to allow the markets to allocate the risk of loss among the various investors in failed businesses.
Inasmuch as private capital will not invest in even a potentially viable business until that company’s financial condition is likely to reward such an investment, the liquidation of unviable companies is an essential part of the process that has allowed market-based economies to generate the most wealth and jobs throughout modern history.
Despite the foregoing, the beneficial aspects of liquidating unprofitable businesses remains often unappreciated. A scene from the 1991 Norman Jewison film "Other’s People Money" illustrates this truth wonderfully, first as Gregory Peck’s character demonizes the forces of liquidation and then as Danny DeVito’s "Larry the Liquidator" shatters the myths upon which such demonizing rests. Enjoy.
Don’t miss Mark Seal’s wonderful Vanity Fair piece on the making — and particularly the war over casting — of The Godfather:
With The Godfather, the era of the $100 million blockbuster had begun, and its creator was the last to know.
“I had been so conditioned to think the film was bad—too dark, too long, too boring—that I didn’t think it would have any success,” says Francis Ford Coppola.
“In fact, the reason I took the job to write [a screenplay for the 1974 remake of] The Great Gatsby was because I had no money and three kids and was sure I’d need the money. I heard about the success of The Godfather from my wife, who called me while I was writing Gatsby. I wasn’t even there."
"Masterpiece, ha! I was not even confident it would be a mild success.”
Rick Perlstein, author of Nixonland: The Rise of a President and the Fracturing of America (Scribner 2008), provides more insight into Nixon’s fascinating relationship with television.
Take a couple of minutes to watch the trailer for what may be one of the most important movies of our time, My Beijing Birthday (H/T James Fallows).
Don’t miss Larry Ribstein’s post on Oliver Stone’s financing philosophy in regard to his new movie about George W. Bush — W — the trailer of which is below:
The NY Times’ Manohla Dargis reviews Newman’s film career.
What with Hurricane Ike scheduled to bear down on the upper Texas Gulf coast over the weekend and the Texans looking as pathetic as ever, we could use a bit of levity around here.
So, check out The AFI Top 100 Movies… In 5 Words Each (H/T Craig Newmark). Several good ones include:
2) Casablanca (1942): Great love story. Plus: Nazis!
32) The Godfather Part II (1974): Advice: stop after this one.
42) Rear Window (1954): Watch a guy watch guys.
Following on the movies theme, if you have a spare ten minutes, check out this incredible YouTube video entitled "100 Movies, 100 Quotes, 100 Numbers."
