Quote:
Originally Posted by stugster
I don't feel sorry for these big companies. Well, I did, until I looked at the Board of Directors salaries.
Small Businesses can only benefit from these kinds of greedy misfortunes.
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Yes, much as the directors of these large organisations are paid a lot (and yes they should have managed the debts better)...it's still important to remember, they employ, ten's of thousands of people who may or may not have a job soon. And what do the family's of these companies spend their salaries on....well all sorts of products and services from large to small businesses.
I think your right Gordon, yes the smaller companies are a little better off in term of how they are geared up. But by no means is anyone safe at the moment. It's irrelavant if your costs are small....if your still not making sales.
And it often the small businesses that have no cash reserves or many assets to fall back on.
But it's the fear factor that is coming into play. There is no more money in the economy than there was a year ago....it's just that its not moving...i.e. we are not spending....and until that happens we will have to listen to the loud grinding noises for some time to come.
How does a government/economy/person start to be bold....because at the moment, what is really truly crippling us is fear!! Nothing else....we are frightened to spend money.....our suppliers are holding back payment to companies as well.....(instructed to hold on to money as along as possible).
But it's like marketing your business....you have to be different to get the business.... As someone once said, "If you do what everyone else is doing, you will get what everyone else is getting."
I don't want to live in fear, I wan't to be big brave bold and brash....and shout out, hey I want to do business....and until the rest of the ecomony shouts out the same things....it will be tough.
Most of the people on this great forum are self-employed, we are the risk takers and the one's willing to lay it all on the line (as long as my wife allows me....
), but my point is this, ordinary people working in organisations, like MFI, Woolies, PC World....only really understand that they either have a job or don't; the techinicalities of trying to understand that to get the economy going, they need to start spending, no matter what...won't enter most of their heads (and that is not implying ignorance or stupidity...far from it) it's just the way it is. But they do fear losing their job, not being able to pay the mortgage, having to sell the car. So what do they do, ....try to save money by not spending....and it then perpetuates the problem even further.
Until this nation (oh god, I'm sounding like a nationalist), overcomes fear, I don't see any of the solutuion of VAT reductions, tax cuts, or even borrowing is going to change anything.....in fact it makes me fearful just listening to what Darling is proposing!! And that's not a good thing.
Gordon