Workers are supposed to get paid for their time.
They work, save and life is stable.
Investors put in money for research, take risks, etc...
In good times they make big bucks. That's their compensation for the risk they take...
Cos when times are bad, they go broke.
Both of them are supposed to save for a rainy day.
BUT... In reality...
Workers get paid for their time.
They work and spend.
Investors put in money for research, take risks, etc...
In good times they make big bucks. That's their compensation for the risk they take...
Cos when times are bad, IF the business is big enough, they can threaten the Government that if they go bust, thousands of workers will be unemployed. So please save us with a bailout.
Essentially rewarding poor and risky behaviour. Executives know this and they play the game accordingly.
They can take excessive risk cos they know the company will be bailed out if anything goes wrong.
Smaller companies are left out cos they are too small to be worthy of rescue.
No one has money saved up and a large percentage of the population lives in debt.
Unfortunately, this is the reality we live in.
It's unfortunate that many businesses will face hard times in the coming months.
If you're my friend, I'm sorry, you have to go though tough times.
But as someone who analyses the markets, economies, etc...
Business owners had their good times, now it's time to face the music.
That's what capitalism is supposed to be about. If I make the wrong investment decision, then the loss is on me. If I make a good investment, then the earnings is also on me.
There's no difference between opening a restaurant, a website, a wedding planner, etc.
All these risks are for them to bear, for the money that they are expected to earn, and they will earn big bucks if they do well. That's the risk they take.
Unfortunately, this isn't the reality we live in.
If you're big enough, and you borrow enough money from the banks, you have the banks by their balls, cos if you go bust, the banks will lose money, so it's in the bank's interest to try to work out a deal.
If you're big enough, and you hire enough people, you have the Government by their balls, cos if you go bust, many people will become unemployed, so it's in the Government's interest to try to work out a deal.
Heads they win, tails everyone loses.
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