If you’re a fledgling company who knows they can create a lot of value, but don’t have the capital to make it happen, taking on a loan is the smart thing to do to maximize those gains. You use your experience to estimate how much risk you’re willing to take on.
In essence loans are a smart way to gain a leg up on your competition for a larger slice of the economic pie. However your competition is just as smart and takes out a slightly larger loan to try and squeeze out a little more productivity. **Globally we are red-lining debt engines trying to out pace the competition. It’s highly efficient until something goes wrong… which it does inevitably.**
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If you’re a fledgling company who knows they can create a lot of value, but don’t have the capital to make it happen, taking on a loan is the smart thing to do to maximize those gains. You use your experience to estimate how much risk you’re willing to take on.
In essence loans are a smart way to gain a leg up on your competition for a larger slice of the economic pie. However your competition is just as smart and takes out a slightly larger loan to try and squeeze out a little more productivity. **Globally we are red-lining debt engines trying to out pace the competition. It’s highly efficient until something goes wrong… which it does inevitably.**
Capitalism is the giant scam.