October 10, 2008 Finance General 0

It’s actuallly very simple…get out of debt.  Once you get out of debt stay out of debt.  This goes for individuals, companies, municipalities, states, and countries.  What I have seen over and over is credit is needed to finance everything..daily operations, payroll(?!?!?!?), etc etc.  This is insane.  My business is about 90% debt free however i don’t borrow from banks(the worst place right now and has been for years) i borrow from my house,  Let me explain:  I do not take out loans against my home but against my other bank account.  I have two revenue streams..my business and my other job’s income.  If i am a bit short on funds(which is rare) i can transfer that to my business bank account.  Once i get some recievables in I send that money back.  This technically is credit…and i have had to do this less and less as i build up my cash reserves.  I have no credit cards..period and no external outstanding loans.  If i don’t have the cash..i don’t purchase it.  With the stock market cratering on a global basis various plans to fix it are being put out.  Just an FYi things aren’t done yet.  Watch this video.  Around 3:45 into the video it talks about something I have not seen talked about much yet..credit default swaps.  Most of these have imploded and continue to be a ticking time bomb.  The market is estimated at 60 TRILLION dollars.  Even if half of those are bad the loss of 2 Trillion is nothing compared to what needs to be flushed out of the system.  This is what most of the media isn’t reporting and what most of the online sites have not talked about either.