"It's called CAPITALism for a reason..."

[angelatc]

http://www.professorbainbridge.com/professorbainbridgecom/2009/05/you-dont-need-banks-and-bondholders-to-make-cars.html


The Journal report quotes one anonymous -- but asinine -- Obama administration official as opining that:


"You don't need banks and bondholders to make cars," said one administration official.

Mo' at da link!

[Mesogen]

Well, in theory, you don't, but in reality it would be damned near impossible.

[Kraig]

Well you really don't need the banks. There is no reason manufacturer can't charge the consumer or reseller directly and it would be more efficient too. All you are doing is cutting out the middle man who is sucking up money through interest. Now you could argue that a bank loan would be needed to get the business off the ground, but once they have established a customer base and a steady flow of cash it isn't needed at all.

On the other hand what you see with most companies in the US is they take the loan to start off, and they down the road they take another loan that will allow them to grow faster than there profits would have allowed. Eventually this leads to misplaced and wasted capital which is why these huge companies are now falling apart.

[Kraig]

Well, in theory, you don't, but in reality it would be damned near impossible.

Only because the government and the banks are in bed together and the laws very heavily reflect that.

[Elwar]

It's called CAPTIALism because all decision should be made in the US Capitol.