9 points on the Bailout

[DAWG1419]

I'm guessing you do not own your own business or have to deal with clash flow issues due to customers paying net 30, 45, or 60?
If you do run your own business out of pocket, how about asking your parents to adopt me as well I could also use a backer...

I run my business out of pocket. No credit lines etc. I have a credit card but it is paid at the end of the month. And we have been running like this for 10 years. Never barrowed one cent. If i can't make it I don't spend it. And I do have a house, new trucks and all the equiptment a landscaper could ask for paid in FULL. It's been rough but we have made it 10 years with no line of credit. If everyone would pay as they go america would be better off. By the way we started with $1000.00 and now that I look back boy was it fun everyone telling me you can't do that. Well we did. and will continue.

 

[elfiii]

I run my business out of pocket. No credit lines etc. I have a credit card but it is paid at the end of the month. And we have been running like this for 10 years. Never barrowed one cent.

Want to reconsider those comments Dawg? The ones about the credit card and never borrowing one cent?

 

[DAWG1419]

I don't consider it borrowing till I don't pay in full 1 month. But I see where your coming from

 

[FishingAddict]

It's the best thing that could ever happen to this country if credit was completely eliminated in any capacity at ever level of business and government.

It's nothing but a scam for crooks, liars and cheats too lazy to work. One end or the other always is looking to get something for nothing on every deal.

If you want something, you should have to pay for it. If you can't pay for what you want, you shoud have to do with out it. Period.





Borrowing money is for the stupid and desperate, not for those who want independence and freedom.
[/I]

Credit, when used properly, is the way our country becomes an economic powerhouse.

For example:

You invent a way to make a car run on water. You need about 50 million to get up to speed and make it happen. Are you just going to save until that happens, or are you going to borrow the money, which will later make you and your company billions?

Credit is used in almost every major business deal in america. Like anything good, if it abused you will run into problems. But if used wisely, it will create economic prosperity.

 

[WTM45]

30 days, 30 years, it is a credit line regardless.

If you like food on your grocer's shelves, gas at the pumps or open emergency rooms you have to have a credit system.

Credit is neither good or bad. It is a tool. And, the tool has been used incorrectly in regards to the mortgage industry.
Thank you, Demoncrats for your relaxing the underwriting standards. It will cost us all for years.

Nothing will be fixed in short order. It will take years of amortization and some outright failures/bankruptcies.

 

[Throwback]

1) an article that quotes Keynes is of satan. Keynes was a globalist and any person saying they are a "conservative" while parroting what he promoted are telling a story. He called for a one world currency called the "Bancor". I suppose that will be a good thing, too. Of course, as long as people make money on it, they won't care.

2) anyone fool enough to believe that
A) this will end the crisis and
B) the taxpayer will never feel a hit needs to pass me whatever he's smoking cause I need an escape from reality, too.

This is the game called bailout and it is what the federal reserve was created for--to protect the few by making the many pay for it.


T

 

[Ol' Red]

Sorry, Red. That's all I needed to see in order to dismiss the author entirely.

1) an article that quotes Keynes is of satan. Keynes was a globalist and any person saying they are a "conservative" while parroting what he promoted are telling a story. He called for a one world currency called the "Bancor". I suppose that will be a good thing, too. Of course, as long as people make money on it, they won't care.

2) anyone fool enough to believe that
A) this will end the crisis and
B) the taxpayer will never feel a hit needs to pass me whatever he's smoking cause I need an escape from reality, too.

This is the game called bailout and it is what the federal reserve was created for--to protect the few by making the many pay for it.


T

FDR, Richard Nixon, George Bush, and Ronald Regan(to name a few) All used deficit spending.....Deficit spending is what brought this country through the economic times of WWII. I don't agree with Keynes so don't make that assumption. He was a socialist and a communist....Economics and financial markets are not black and white...it's a HUGE gray area. I believe in the ability of the market to correct itself, but sometimes it needs help especially when demand and supply are being artificially effected.....

30 days, 30 years, it is a credit line regardless.

If you like food on your grocer's shelves, gas at the pumps or open emergency rooms you have to have a credit system.

Credit is neither good or bad. It is a tool. And, the tool has been used incorrectly in regards to the mortgage industry.
Thank you, Demoncrats for your relaxing the underwriting standards. It will cost us all for years.

Nothing will be fixed in short order. It will take years of amortization and some outright failures/bankruptcies.

Again, why is this so hard for some people to understand?!?!? Credit has got to be restored to this economy...the bailout is/was the only way. These bad investments(mortgages, credit swaps, etc) have got to be able to trade and there has to be liquidity in the market.

Red

 

[Jranger]

I run my business out of pocket. No credit lines etc. I have a credit card but it is paid at the end of the month. And we have been running like this for 10 years. Never barrowed one cent. If i can't make it I don't spend it. And I do have a house, new trucks and all the equiptment a landscaper could ask for paid in FULL. It's been rough but we have made it 10 years with no line of credit. If everyone would pay as they go america would be better off. By the way we started with $1000.00 and now that I look back boy was it fun everyone telling me you can't do that. Well we did. and will continue.

That's quite an accomplishment and you are to be commended. However, your only expense out of pocket is your labor and fuel. I would imagine that your customers pay you as you bill them or either per job? My company buys electrical parts from a distributor (which our cost alone can easily exceed 10k on an average job), we manufacture the product (which takes a few weeks), and then we deliver the finished product with a bill. In a perfect world we get paid net 30, in reality it's more like 45 to 60 depending on the customer. This is the type of cash-flow problem I'm was referring to in my original post. I don't think you are having the same issues that most manufacturers deal with when it comes to cash flow.

 

[WTM45]

Red, what makes you think I do not understand?
What I am unhappy about is the cause, not the attempt at keeping confidence and credit liquidity in working order.

The bad investments must be made right, and that does not mean perpetuating their fake value. Someone will have to take the medicine. It needs to be done over time.

 

[Ol' Red]

Red, what makes you think I do not understand?
What I am unhappy about is the cause, not the attempt at keeping confidence and credit liquidity in working order.

The bad investments must be made right, and that does not mean perpetuating their fake value. Someone will have to take the medicine. It needs to be done over time.

I was agreeing with your post. You are one of the few that does get it. Sorry for the confusion.

Red

 

[WTM45]

I was agreeing with your post. You are one of the few that does get it. Sorry for the confusion.

Red

No problem! We are ones who think that investment in our own financial affairs is a prudent thing!
Lord knows we give enough of our dollars to overseas folks!

 

[Lead Poison]

Some bailout was probably? neccesary,but what's appalling is the billion or so in PORK they HAD to throw in there!

Bingo!

With things so very tight financially, both the Rep/Dems. should have made certain that not a single penny was wasted in their bailout plan.

Instead, they passed a bailout which contains huge waste. How on earth can they look the American people in the eye after including pork for such things as wooden arrows and rum subsidies, along with who knows what else!

They were totally irresponsible in passing this particular bailout plan.

 

[DAWG1419]

That's quite an accomplishment and you are to be commended. However, your only expense out of pocket is your labor and fuel. I would imagine that your customers pay you as you bill them or either per job? My company buys electrical parts from a distributor (which our cost alone can easily exceed 10k on an average job), we manufacture the product (which takes a few weeks), and then we deliver the finished product with a bill. In a perfect world we get paid net 30, in reality it's more like 45 to 60 depending on the customer. This is the type of cash-flow problem I'm was referring to in my original post. I don't think you are having the same issues that most manufacturers deal with when it comes to cash flow.

I don't know. When we work for builders we can spend upwards of $20000.00 per week on plants,sod,fuel, and labor. I guess you don't think of a landscape company doing that kind of bussiness. But I'm not mad at you but don't assume everyone has a backer. I never have and I don't want one. Good luck to you and the rest of the self employed out there. It is a tough row to hoe but it can be done if you want it bad enough. Good luck all

 

[Jranger]

I don't know. When we work for builders we can spend upwards of $20000.00 per week on plants,sod,fuel, and labor. I guess you don't think of a landscape company doing that kind of bussiness. But I'm not mad at you but don't assume everyone has a backer. I never have and I don't want one. Good luck to you and the rest of the self employed out there. It is a tough row to hoe but it can be done if you want it bad enough. Good luck all

Your right, my bad, I figured maintenance verses actual installation. Big difference.

 

[Back2class]

I don't know. When we work for builders we can spend upwards of $20000.00 per week on plants,sod,fuel, and labor. I guess you don't think of a landscape company doing that kind of bussiness. But I'm not mad at you but don't assume everyone has a backer. I never have and I don't want one. Good luck to you and the rest of the self employed out there. It is a tough row to hoe but it can be done if you want it bad enough. Good luck all

I am with you. I have opened a contracting company and a restaurant. Never took one cent of a loan. My wife has a successful business now and payroll and everything else is paid out of pocket. We do rent the retail space but I suppose we could go into debt if we wished to own. But that would be a luxury. Yeah, I paid cash for this house too and never purchased anything newer than a 5 year old vehicle. I did take a car loan out once for 2k and despised the wasted money. I have to laugh at the people crippled with debt. Work hard and buy what you can afford! So congrats to you for doing well completely on you own. This all started because my credit stunk after college because of credit card debt. What a blessing! It forced me to go without credit for a long time and what a blessing it turned into.



No, the bailout was a joke. Both at its base and the pork. Companies made bad investments. The companies positioned to survive will take the place of the failed. It is natural and will hurt. But it is necessary to let it happen so things can heal. The bailout was wrong as it just prolongs the correction and ideologically I do not like the federal government taking over a large part of the private sector. So without a doubt it WAS NOT NECESSARY!