Tuesday, December 30, 2008
GOING, Going, going - concern?
Going concern - "accountant speak" for assessing the present viability of a business undergoing a financial audit. Know where I'm going with this yet?
Now more than ever, governments at every level - federal, state, county and city are facing a looming reality - how will they get cash to pay for promised services and or benefits and interest on current indebtedness? Answer - from those who have it.
Where does said cash live? We may properly ask "And how do they (still) have it?"- it's what was f/k/a the "rainy day" fund - the prudent among us who saved rather than spent all their money.
The prudent who didn't leverage up far beyond the max on mortgages, credit cards, home equity lines of credit aka helocs, 125% mortgages, cash out mortgage refinancings to splurge on cars (more than 1 per person), 2nd and 3rd homes, condo flips, toys, more toys, vacations, rarely or never prepare a home cooked meal; tell me what it feels like to get whacked by that hockey stick; in a grotesque sadness the most prudent are paying and will continue to pay dearly for the most prurient!
UNTIL those who have it realize we are paying for a small percentage of the US adult population (known as cry babies) largely self inflicted, greedy decisions that turned out to be investment or borrowing mistakes and refuse to pay.
[If I buy a stock and it goes down and I hold out my hand and ask my fellow tax payers to bail me out is that fair? Is it more fair had I margined that stock position and pulled cash out of the account to take a trip or a cruise or bought a new car; of course not - yet that is precisely what some homeowners did - didn't they - why should you or I pay taxes and bail them out? Let them sell their toys and trip photos on ebay!]
Why not? what's the risk? Why not be a deadbeat and wait to get a government handout?
Or just wait until the retailer files for Bk and your store debt is washed out in the rinse cycle of reorganization.
Why pay any bills in full and on time anymore - it pays to be a cry baby deadbeat doesn't it?
Or is it me? Even bona fide tax debts can be settled for pennies on the dollar - why should or would anyone EVER PAY FULL FREIGHT FOR ANYTHING EVER AGAIN???
Is it any wonder why many things in America(n) have been devalued and are / will be at a contunued discount, looking ourselves in the mirror - is it because we have enabled the discounts? Someone please...