|
Day Co. SD |
The debate of production value vs asset value intrigues me.
In the 1980 there was real risk of failure. You went to town on Thursday night, you charged at the proprietor owned grocery store, the proprietor owned hardware store, the proprietor owned clothing store, the proprietor owned gas station, and many others similar.
If your financial decisions came out on the losing side? You had to stiff your local friends and neighbors. Pretty tough for you, your wife, your kids, your parents, even to some extent your siblings, to walk around town after that much less try to do any other future business.
Somewhere along the way, the era of “too big to fail took over” in society. If you made bad financial decisions, someone would bail you out. If you made bad financial decisions, it wasnt your fault.
Now instead of getting credit from your friends and neighbors? You use these plastic cards that have owners you have never seen. You borrow up a pile at the local bank? The desk jockey that handles your paperwork gets moved to a different department and a new recruit makes you tighten your belt. That is a until you take your business to another bank that you have no idea who owns.
The psychological risk of failure has gone away. Being prudent is for the guys that finish last. People that wanted to save money as an investment strategy are punished with ridiculously low savings rates. Go by assets and hope they inflate but at least not devalue is the new savings strategy.
My opinion. Other opinions may vary.
| |
|
Gold on a tear post. Just a thought.
