Quote Originally Posted by lektrode View Post
couldnt agree more!

i ROTFLMAO every time i read/hear about some small-to-bigger biz going tits up due to "not being able to borrow enuf working capital" not to expand, but just to keep the doors open?!!

when, back in the good ole daze, "working capital" was what one had _saved_ during good years, so had the money to expand when opportunity presented itself or could simply survive the biz cycle without having to go to the bank to borrow

...

now it seems that most of the MBA whizkids (or other wannabe biz operators) have no idea how to run a biz when they dont have somebody elses money to blow...
Agreed! And this lack of savings/responsibility became the Standard Operating Procedure at the personal, business and governmental levels.

My blue-collar, lower-middle class parents built their house with sweat equity and the money they saved for it. They never had a mortgage, let alone a car loan or credit card debt. Since then, a house you couldn't afford became a way to get the Hummer you couldn't afford – a new one every two years – and people pay interest on their groceries.

And when was the last time you heard of a municipality/school-board/state say we're going to need a new school/courthouse/whatever in a few years, so let's start saving up for it? It's easier to float a bond and let the future pay for it.

And these are the SOPs in good times! Every level of society was holding their max debt load (more than they should have been allowed) and imagining there would never be a rainy day.