Feasibility Study

FESIBILITY STUDY A feasibility study is a scientific economic tool. Business is a science. Business scientists have devised a multitude of feasibility studies for specific purposes. The philosophical principle of feasibility studies hinges upon the idiomatic expression, ‘Look before you leap!’ Often time investors allow their emotions to over rule logic. They may rush in haste to leap first and look second. Twenty-twenty hindsight may cause him or her to regret using poor judgment to make a bad investment.

Recent Articles Treasury Draws Fire for Shift in Rescue Congress may have taken its anger out at Henry Paulson Secretary of Treasury for his shift in policy. Yet, Congress should be angry with itself. The reason is that Congress has failed to fund a feasibility study prior to making such a gigantic investment. Chief Executive Officers (CEO) have strayed away from feasibility studies. The latter may have grossly impacted the Wall Street Melt Down of 2008. Feasibility studies for Fannie Mae and/or Freddie Mac may have notified Congress of Wall Street pitfall for deregulation. The crisis of deregulation may have been remedied during the engineering stage. Instead, Congress has chosen the wait-and-see approach.

President Elect Barack Obama President Elect Obama could issue an Executive Order that mandates Congress to fund feasibility studies prior to making any huge investment of taxpayers’ dollars. The latter may delay implementation of certain programs. Yet, it may secure investment of taxpayers’ dollars against fraud, waste and abuse.