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cropsey, il 61731 | You'd think that might be against any politician's instincts. However, one of the US's great strengths was consistant and stable accounting and banking systems. I believe this was made possible by putting in place a set of rules that everyone could follow yet still profit - maybe not huge profits, but stable over lots of years. It probably will always take careful regulation as market changes make old rules inadequate. Have to keep the basics in place - low risk, low return, low possibility of loss, high risk, high potential return, high possibility of loss. Ie. jumping off a building shouldn't be safer than sitting on a couch.
We need to let these guys fail and come help me with hogs for a while at $7/hour (under min. wage). It's like there is a crazy farmer paying rents that equal his gross income/acre who obviously fails and then gets a bailout to keep going - this isn't good for anyone or the system. Very high risk takers need to be allowed to fail. There will always be risk takers pushing the limits (almost as a service to the rest of the industry), but don't support it as standard business. The market works best when there are consequences to risk at some point - otherwise it wouldn't be risk.
As far as banking goes, Jim, you have a significant business(es) - not to get personal, but have you noticed banking issues for companies of your size, profitability? For me I could still build another hog building if I contracted with the right folks.
Thanks,
Pat
Edited by Pat H 1/26/2010 10:09
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True state of the banking system
