CEO offers advice for upcoming financial woes
>>Print ViewPublication Date: 11/24/2008
Zach Cox | Staff Photographer
Equifax Inc. CEO and Chairman Rick Smith talks about the current economy to the Management 401 class on Friday in Rawls Hall.
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The chairman of a major business organization visited Friday to explain to students how volatile and difficult times lie ahead.
Rick Smith, CEO and Chairman of Equifax, Inc., a company that provides solutions for businesses and consumers worldwide, spoke to students in Rawls Hall and shed light on the financial market and the economic crisis. The event was sponsored by Krannert Executive Forum.
"Financial markets are as frail as they have ever been," Smith said.
One problem that has attributed to all the financial turmoil in the markets is the credit crisis, he said.
"The credit crisis is the willingness to lend," Smith said. "However, lending of the banks has literally come to a halt."
The credit markets are frozen and house prices are dropping at unbelievable rates.
He said in 2002 and 2003 money was dirt-cheap leading to the philosophy that everyone should have a right to own a home.
"That was flawed thinking," Smith said. "To some people, apartments are fine to live in."
According to Smith, more people in America have negative equity in their homes which is one factor in the financial crisis.
Even though the economy is in a recession, Smith said he believes the government will get markets going again and with far greater regulation.
"I think we are going to get through this," Smith said.
Smith offered his own suggestions for the General Motors bailout.
"I think they should go bankrupt," he said. Going bankrupt would allow General Motors to restructure and, in the long run, rebuild their company from the inside out.
Xiao Liu, a junior in the School of Management, said Smith offered a lot of details to help understand what is happening in the world and here at Purdue.
"He offered great suggestions about future careers," Liu said.
Smith said even though the economy is struggling, students should continue to prove themselves every day for their future jobs. He told students to work harder than they ever thought they had to because there is always room for valuable talent.
"Stay true to yourself," Smith said.