Distress in an Upcycle?
This article is featured in the Fall 2017 Newsletter. To view the full newsletter click here.
A Reflection by Douglas Wilson….
As this economic cycle continues to mature, we are often asked where conflicts and distress exist when the economy is still frothy. I am often reminded of a speech I heard many years ago wherein the speaker stated that Enron happened in the best of times. I think this is very accurate as the number of fraudulent schemes seems to increase at this point in a cycle as evidenced by the Madoff Ponzi scheme several years ago.
Fear, greed and the pursuit of yield are the basic components of the fuel that drives most of these frauds. Further, good times often result in partnership and family disputes that are fueled by the same factors.
Since DWC’s inception in 1989, many of our largest and most complex assignments have been the result of such disputes.
Memories are often short and I am always troubled when I hear that this cycle is different because there is a new paradigm. Call me skeptical but I do not see a fundamental change in human nature on the near term horizon.
