One of the most dazzling economic phenomena is the “creative destruction” identified by Joseph Schumpeter, that describes the way in which the capitalist economic development arises out of the destruction of some prior economic order.
I immediately remembered this when I read about Jolla. Nokia has been paying 25,000 € to every employee that leaves the company to start a new venture, among those ventures is Jolla, a smartphone company whose employees are mostly from the team responsible for the Nokia N9 project that some people argued it was under supported. So this company proposes to launch one, maybe two smartphones with the MeeGo OS that was used in the N9.
The beauty in this is the fact that Nokia is falling from a cliff, and many people is going to the unemployment lines, but coming out of this mess a couple of guys with expertise just said: “What the heck! Let’s do it!” This might just be a hot IPO in a couple of years, keep it under watch.
On another destruction note, tomorrow JP Morgan will present its quarterly results. Some analysts defend that the mess is even catastrophically worse than what has been stated. I do not think so, but either way, Jamie Dimon is going to have a though day.