^^^

I don't follow you at all.

Relying strictly on cash flow and no credit is financially dangerous and deters growth. Business would be too scared to spend any money in fears that it would need it for unexpected problems. There would be fewer employees to save more money.... there's just way too many problems for a growing business to rely on cash.

Credit works and it makes sense. Human greed and corruption will always exist and won't go away with the dismantling of the credit market.

 

I found one area where GM might look to cut costs;

"GM Spends $17 Million Per Year on Viagra"

http://www.consumeraffairs.com/news0...gm_viagra.html

 

i understand why they have credit, i dont understand why they have credit for 80 years. not having a lot of cash is one thing, not having a lot of cash and owing billions is another... which is more catatrosphic? my point is that businesses should plan to be debt free someday, but they dont. at least, i'd think a business would want to be. otherwise, a business is a recession away from folding... hows that work?? a new compay is one thing, but companies that have been around for a long time?

 

speaking of morons, look who else showed up. mrFoxNews? really? maybe you should use the search tool?

struck a nerve? not really. let me put this into context:

every corp in the world functions on some kind of credit, even the one i work for which happens to have about 25billion in cash laying around. your statement just goes to show that you have no more than a passing knowledge of how our financial system works

only against you, fat boy. hows the wife, still useless and unemployed? [/fun]

i never thought id say this, but you actually seem to unnderstand the situation. that makes you better than 90% of Americans and certainly better than the other bnet kiddies in this thread

 

you know you like bears fruitcake...

wife's good. as for the unemployed thing... don't know where you got that from, she's had her city job for quite some time.

 

Yeah, i got to learn all about that in college, still doesn't mean it has to be that way forever. I still feel that companies should have some plan to be completely ahead at some point. Just how I feel about it. There is no requirement to live on credit, they just do. Things weren't always this way either.

 

only for the entire history of western civilization. and eastern civilizations for that matter. oh and a great deal of ancient societies too.

 

I don't understand what you have against credit. Why not just go back to bartering? Getting rid of it doesn't remove greed or bad business practices.

 

I work for Budweiser.... nothing is really changing except for who owns the company itself. Budweiser is still made in one the U.S brewries and is still distributed by Americans hahaha... the profit just goes to the Belgium people who own it now hahahaha

 

I don't think anyone is against credit, rather it's the blatant abuse of credit that some of us are upset about.

A well run company should only need to use credit to smooth out the bumps and dips in their month to month cash flow or to help underwrite longer term capital investments.
But what has happened recently is companies that have squandered their shareholder equity and cash reserves by investing in what really amount to massive fraud schemes like credit default swaps and leveraged derivatives, are needing enormous amounts of credit to underwrite their very existence, when in fact they probably should be failing because of bad management decisions.

I think the biggest problem most of us have with the current situation is that the individuals responsible for the so-called "crisis" are being rewarded with huge salaries and bonuses funded by taxpayer bailouts instead of being fined, fired, laid off, or in any other way punished.

Obama likes to talk about transparency and sound business practices, but I worry that he's engaging a lot of the same old guard when it comes to economic policy and I still don't see anyone addressing the root causes.

Its looking more and more like 1929 all over again.

 

I know it doesn't, and I'm not against credit, I just don't understand why have debt forever...

I mean, does anyone here think our wealthiest men/women have large debts, or keep large debts for decades? Movie stars make massive money, but aren't the wealthiest people per se, the wealthiest ones are the ones who invest, find ways to make more and are efficient with money. They don't have huge debts on hand, or at least, don't have huge debts on hand decade after decade.

I understand credit, the need for it, and why people use it. I have, and still do... But I don't want to be in debt until I die... I want to be debt free (unless buying a home) within 5-6 years. Probably will happen sooner rather than later at this point (hopefully )

But large corporations run LARGE debts, literally, are on life support with credit. I don't think big names in the industrial revolution were running their massive enterprises are massive amounts of debts. Look at Rockafeller, dude had unheard of amounts of money in his bank account back then.

I think businesses have it all wrong. Just how I feel. People can't (usually) buy homes outright, which is why you get a mortgage. You're supposed to pay that mortgage off, not refinance over and over and over again, using your home to fund a lifestyle one can't support without the debt. Eventually one should pay off the debt, but i think it's become rather a central part of people's lives now. Doesn't mean it needs to be though.