If you are not reading Mish everyday, you should be... he bird dogs the best stuff... in this article apropo to the talk of ratings agencies and regulation, he calls for the elimination of the ratings monopolies the govt gives Fitch, Moody, etc....
But more important, there is something this article notes: the bailouts are so massive and the US Govt guarantees to banks so strong, that banks find it better to keep their money than risk it on small and medium businesses. I know people who've had to dip into their IRAs to replace lost lines of credit at the small business level. As the article notes, perfectly profitable, viable businesses are folding for lack of credit.
If so, how about in your field? A self-financed business may be 1/20th the size, but plenty profitable as a start for you.
There is something else here, having to do with natural law and making money on money. Does using interest give people outsized leverage, allowing them to control more than would be normal? And if so, is it ultimately a unsustainable biz practice?
Monday, January 5, 2009
Your Competitors Take A Hit
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