Posted by nykshaknbake:
Yeah, I feel like the prior growth was just on borrowed money and now that the limit has been reached the real state of the economy is being exposed. It's a nasty situation now. It sucks to bail out the financial institutions with how their execs are sticking it to us. But at the same time you can't let that capital freeze and you don't want a nationalized economy.
I really think, for the most part, it's just that simple.
Then you add in the fact that we, as consumers, simply have too many choices, and you understand why the wealth that does exist is spread so thin that nobody really capitalizes from it. We just have too many choices. I was getting food today, waiting outside the chinese joint, looking at the parking lot and I realized, I'm looking at over 200 cars, and not one is the same, NOT ONE. That means not one of those cars made money for their companies. Now, instead of 200 individual choices, what if there were only 20? Now you'd be talking about 20 car models all doing very well on the market!
It's really two-fold there I realized today. It's not just the phony money through credit and loans that never actually existed but still counted in everyone's spreadsheets - but it's also the fact that there are just TOO MANY CHOICES for everyone and that meant so much money was so spread out that no one person could actually make money on their products!
...it's why I am an advocate of looking at say, for example, the "big 3" auto makers and saying know what? One of you are folding outright. Closed down. Gone. And your business will go to the other two with the hope they can now make money. The jobs from the closed down company get partially absorbed by the remaining two businesses who will now grow - because - consumers' choices are now narrowed between those two companies, who will now grow as a result of demand.
..............am I wrong here? I don't think I am!
3/6/2009 10:03 AM