posted on Sep, 29 2008 @ 05:33 PM
As much as I dislike President Bush & Company, and despise the decisions he has made and the steps taken during his time in office – The one thing
that I have to acknowledge is that his attempts to rescue the economy were the right thing to do. I would go even so far as to say that perhaps this
was the ONLY right thing he had been trying to do and the American’s need to support his rescue efforts whole heartedly.
We currently live in a world which has been shaped by Capitalism and the present version in place means that if one significant part of the system
comes to a stop, then the rest of it collapses around it. People have been warning us of the inherent evils of capitalism for decades but no one
listened – and why would they? The idea that the big banks and the monetary system will go belly up was unthinkable. The unthinkable is now
So how does this affect you and I??? To put it in a nutshell:
• The capital provided by the banks is the heart of the current version of capitalism in place globally. If the banks do not have the liquidity
(cash) to hand out, then the obvious thing is that they will not give out credit to businesses.
• Businesses are not some unsinkable entities, all successful businesses run because they have credit to support its endeavours. If there is no
credit, there is very limited cash.
• Limited cash means that big businesses will put projects on ice, expansion plans will be halted, infrastructure programmes will be abandoned. This
means that there will be limited opportunities for employment and small / medium businesses will struggle.
• Now the funny thing about reduced employment opportunities is that its effect is not felt immediately. The unemployment rate increases slowly say
0.1% one month, another 0.2% the next month and so on. By the end of the quarter – its gone up a bit. Another quarter later, its gone up
significantly. So it usually takes 6 – 12 months for the reality to hit home. The first to go are contractors, then overtime is cut, penalties and
benefits are cut, then slowly everyone goes.
People on ATS who are in my position of running a business will understand what I am saying. Businesses which were barely keeping their heads above
water will now be plummeting into the red. There will be a lot of bankruptcies and people will struggle to keep their employees – and some will
struggle to support their families.
On the last note, I should make it clear that I am in Australia. I operate a business in Australia. I am far far far away from the United States but I
know I will struggle with my business and will have reduced ability to feed & cloth my family in the next coming year. I don’t want ATS readers to
think that these are rants of a failed business owner who was no good at what they did. The truth of the matter is that I run a very successful
company but I am acutely aware of the realities on the ground. To give you a comparison: Last year this time the my company was averaging $20 – 28k
in profit per month – working from home only 3 days per week. This year, my clients are being cautious and the profit is down to $15k per month –
and that’s after working fulltime and pouring my heart & soul into my work.
I am in a profession which sees first hand what is happening in factories and businesses, listens to the laments of CEO’s and Presidents of
multinational companies over a beer on a Friday night but I am also just a phone call away from everyday people. I make money by helping men & women
grow their career with global companies – so they too take me in their confidence and share their joys & woes with me over a BBQ or a coffee. Things
have not been pretty recently. The effects were felt two months ago, but businesses were optimistic with the hope that things will improve in the
United States and the bailout plan will ensure stability.
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