I have the utmost appreciation for business. A lot of you have asked me “what in the world is going on right now?” I think there is some confusion regarding the perception of business and the banking industry. I don’t think the same rules apply; and I don’t think it is appropriate to lump the two together. I believe, for example, that there are plenty of (perhaps more than enough!!) regulations in terms of businesses and how they operate. Yes, large corporations are beholden to their shareholders, and it is incumbent upon them to create value for their owners.
However, in terms of banking, we enter a whole new world. This is where money flows (and doesn’t!!), and banks can largely be regarded as brokers. And that is where the trouble rests, because the controls are simply not stringent enough. The connection between the money managers and governmental regulations has been broken. So much has been said about letting the markets ‘find their own level,’ or statements of that nature. Nope, sorry, it doesn’t work that way. This is a system that has run amok, and no longer is in balance. I allude to balance often in the business of being in business. The financial markets no longer have the controls necessary to maintain a healthy balance. Those that have the reins, are pulling much too hard, and have ridden the system into the ground. The leadership needed to bring this back into balance is not in place; and I have looked for it……
One of the problems is how unpopular any leader will be to bring things back into balance. The reason is that the solutions are painful and fraught with change, the kind of change that no one individual wants. We have gotten far too used to the pleasures our system provided. That system is damaged and the solutions are tough ones to live with.
What to do? Stay tuned…..
One thing NOT to do is be discouraged about starting or maintaining your own business. I truly believe in the grand scheme of things that owning your own business is one of the ways to thrive within the current state of things. We have opportunities for ourselves there that we cannot create any other way.
Some basic understanding of budgeting and cash flow management is essential in order to optimize your situation. There will be much more on this subject under “Read the Fine Print.”