I like my life this way, I may not have a million dollar yacht but I also don’t have the monthly payment on one either, if I want something I save up for it.

@Stefan – Your guess is as good as mine. There are car parks jammed with thousands of new cars that nobody wants to buy outside these factories and yet the money keeps flowing into these companies. I guess it’s a sort of state benefit – rather than have them on unemployment benefit give the company the money instead. We are living in crazy times.

“So, no one have bought our cars for several years.. Which means we are losing money and still having a lot of cars no one wants.. Would you like to lend us some money so we can continue to build more cars no one will buy?”

Why is this accepted in their business?
.-= Stefan´s last blog ..Monthly Roundup – July 2009 =-.

Another example that I’ve observed is in the floor cleaning business. When a worker breaks a buffing machine, business grinds to a halt. Without one, no money is made. Here is where the bank comes in. Or if I had ANOTHER buffer, I can do twice the work in the same amount of time and get paid more. I need to make a nearly 10,000 purchase on a good buffer machine. Having been in business for only a couple of years, that kind of capitol is not readily available. If I don’t use the resources of the bank the business will stop if I only have 1 broken one, or not grow if I want 2.

I see you point about businesses and individuals borrowing money for things that are risky. In good times everyone wins, banks get money from borrowers, investors get money to buy stocks they don’t normally have money for and profit, and businesses use the money to attract more customers who in turn make them more money. But as soon as someone yells out ‘the economy is bad now’ everyone suffers. Banks lend less in fear even though THAT how they MAKE money. Businesses get denied money they need for growth and expansion and lose customer, so in turn the company shed employees who go home and yell out ‘the economy is bad now’. Investors start to lose money in those very businesses so THEY quit buying which makes people who invest in them to grow their saving lose their money and yell out ‘the economy is bad now’.

All it takes is someone to say ‘the economy is healthy now’ and everything will go right back to where it was…wasted spending, sloppy investing, and careless money lending.
.-= Thai´s last blog ..One of the Smallest and Fastest pdf reader SumatraPDF =-.

On the web for example there have been times where I’ve had the golden “opportunity” to invest heavily in traffic where I know the major benefits will be time limited (only for 1 day in some circumstances). I could have borrowed to fund that in the hope that it all works out. I haven’t and wouldn’t do it. I’m comfortable with risking $1000 of my own money, I’m not comfortable with risking $10,000 of the banks. Running a business is a gamble and I prefer to gamble only with what I can afford to lose.

When a business moans that they need cash for stock the first thought that always goes through my head is “so what the hell happened to the money you’ve made from selling your old stock?” Maybe they decided to buy a new watch, or a new car?

I know I’m harsh about this, it all comes from my less than well off background. My philisophy is simple, I only spend what I have. I seem to get by OK doing that