Human or financial capitals, which are the best?

Author:: ALEJANDRO 11
Date:: December 8, 2008

Source for Image :
http://misc.mortgagebrokers.ie

As you certainly would know, the United States of America are suffering right now a terrible financial crisis that has spread to other world economies. The capital market – and the stock exchange – show experts from all around the globe the magnitude of the losses that undergo the present global market. The efects of the economic recession in America (a recession that could become a tremendous economic depresion) are easy to identify: thousands of new unemployed and several firms that declare bankruptcy (think of GM, Lehman Brothers, or of the mortgage giants Fanny Mae and Freddy Mac, among many other well known enterprises).

There is no way to predict how many people is going to loss their jobs. No one can say. The actual situation spreads fear to all world economies, and that is one of the reasons why the capital investment on different markets has shrunk. Investors don’t want to lose their money. The uncertainty of the current financial landscape, and the economic obstacles that must be avoided, show that perhaps the human capital is the form of capital that should today be enhanced and fostered.

Of course, now, that we are living the first decades of the ‘knowledge society’, human capital equals, and sometimes exceed, the importance of the other sorts of capital. Human capital produces financial capital and wealth, but it is rare that financial capital and wealth produce human capital. The latter shall be trained and formed in each person, and that takes long time, as you can imagine. But once you have the adequate ideas and methods working in the brains of your team, you can say that nothing would threat your business... Nor even a 'simple' subprime crisis.