Herman School of Business
Debt is a cancer that can kill you.
The business cycle is not complicated. Someone makes a product at a certain cost hoping to sell it for a profit. You buy that product because you want it. They make…you buy…everyone wins. But what if you have no money to buy the product? The maker sits and has no buyer. You don’t buy so you lose too. Economies are based on the ability of buyers and sellers being able to make transactions. People have to want to buy stuff.
But Americans want too much stuff. We want more stuff than we have money to buy stuff. Alas, another businessman enters the market and says he will extend credit to you the buyer so you can transact with the seller and all is well again. But the credit giver wants a profit so the cost to you goes up. And remember, this is a cost even higher than before and you didn’t have money to buy it then. So what the hell makes you think you can buy it now? Because we can pay it off in the future when we have more money than we do now! But alas…later we really don’t have more money. And we want new stuff even though we haven’t paid off the old stuff. So the credit giving guy gives us more credit…if we agree to pay him even more profit.
When we ran out of room on the credit cards the credit giving man said let’s give them more credit on their houses. Even sometimes more than the house was worth. So the buyer can go get more stuff. And the economy was booming because people were buying and selling so much stuff. But then people couldn’t pay back their credit cards…or their houses…because they needed their cash to keep buying stuff and they couldn’t just give it all to the credit giving man because then what would they have left for more buying.
The music is stopping soon and you better grab a chair. Stop buying so much stuff and get out of debt. Stop feeding the insane debt machine created to make someone money coming from your pocket. Yes, you will suffer by not having new things, and the sellers have to get back to reality of only selling things people can pay for…and the credit giving man will even lose a few pennies from those who stiff him.
Watching people putting eight bucks on their charge cards at the Starbucks is making me ill. Stop going into debt and live on what you have in your pocket. By doing that you will get the greatest “stuff” you ever had. Peace of mind.
HERMANISM # 9
Are You Using The Ph.D. You Got From The School Of Hard Knocks?
- Posted: 19 September 2007
- Comments: 0
- Category: Business failure
add a comment