Consequently many large railroad systems of heavy capitalization bid fair to run into difficulties on the first serious falling off in general business.
Sentiment: NEGATIVE
We started CapitalSource because large banks were ignoring small to mid-sized businesses, and we saw a big business opportunity as a result.
The rage for railroads is so great that many will be laid in parts where they will not pay.
In the struggle between capital and labor, more often than not capital has won, because the real source of value for most companies has historically been the hard assets that they owned and controlled.
The clash between capital and labour, between those seeking to maximise profit and those with only their toil to sell, was the driving force for the creation of the trade unions in the 19th century.
By any measure, CapitalSource outperformed both our direct competitors and the financial services industry in general, particularly in the context of the near collapse of the financial services industry where 19 of the 20 largest financial institutions in the country either failed or were bailed out by the government.
You know, when the cost of capital goes down, when credit becomes cheap, people start taking greater and greater risks.
Whether it's steamships disrupted by the railroads or railroads disrupted by the airlines, it's typically the large entrenched incumbents that are displaced by innovators.
Freight mobility and movement, while not a sexy policy issue, is a highly important one. Capacity constraints and congestion on our nation's freight rail system create many problems.
Our purpose, as we face these challenges, remains clear - fair and orderly markets that allow for efficient capital formation, while protecting the interests of investors.
Railroads are the primary economic beneficiaries. It's a difficult project for the public sector.