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    4 Replies Latest reply on Dec 10, 2008 3:30 PM by Mongoose

    I'm outraged. Are you?

    NoBullFunding Scout
      So every mammoth, gigantic, heartless, soulless, corporation who screws up because they are GREEDY get all the money they need to recover because they are too big to be allowed to fail. Meanwhile, all the small business owners are on the verge who are losing their business, homes, and life savings get NOTHING. So if all the small businesses that are failing were part of one big company, they'd get a "do over". But since they operate independantly, they are left twisting in the wind.

      Not only have the greedy banking, insurance, and (maybe even) auto CEOs been getting paid handsomely for years, now we learn that there is basically no risk because the gov't will pick them up when they fail. I spend my days trying to help businesses who are failing, and it's heartbreaking to see their lives slowly falling apart, and I know that there is nothing I can offer them to help. The people aren't spending their money on anything because they are afraid to death of losing their jobs, and virtually every business is suffering because of it.

      Is anyone else utterly outraged?

      (And yes, I get why we can't let Citi and AIG from an economic standpoint. That still doesn't make it fair)
        • Re: I'm outraged. Are you?
          Lighthouse24 Ranger

          Yep, life's not fair. When small business owners mismanage assets or take risks that don't work out, we pay for it with our savings, our homes -- often everything we've got. Then we have to climb back up and start over on our own.

          The current economic mess wasn't the result of a combination of totally unforeseeable events and bad luck -- it was the result of negligent and incompetent management on many levels for an extended period. Yet most of the decision makers who were involved (private and government) are continuing to live well and draw big salaries -- and continuing to make bad decisions (only with our money now).

          It's irritating (and scary) in one sense, but I consider it a badge of honor in another. After all, a small business is subject to almost the same core economic principles, market conditions, and regulatory requirements as a large business -- and we don't get nearly the breaks and benefits. Yet in spite of that, many of us continue to "mind the store," serve our clients and customers faithfully, and run profitable operations. I'm kind of proud of that!
            • Re: I'm outraged. Are you?
              snipperred Scout
              Nice points!

              I am never surprised by government corruption or corporate greed. These have been commercialized time and again as "change masquerading as reform". I'm optimistic about new leadership, green industry, and more intelligent systems across the board. However, if things unfold better than ever it will be a pleasant surprise.

              I have actually been following a line of thought promulgated by Lester Thurow from MIT's Sloan School of Management. He's got a fascinating book called The Knowledge Based Economy. He outlines the phenomena of globalization, internet, technology, and the new emerging rules for individuals, businesses, and even nations. If you are up to speed with me on this, then we could easily transpose what is happening to a model of economic factors that have been predicted in the modern economy. Primarily, there is an ever increasing rate and complexity of transformation. Your home based business is right there competing on a virtually level playing field with major corporations. It's becoming a race to who can anticipate niches and deliver on them best. I see corporations folding over to develop more personalized relationships with their market base. Small businesses are jumping on market opportunities they find neglected- simply from their recognition of their own interests, preferences, and buyer's market expectations.

              I have a feeling people are going to be surprised by the ongoing market fluctuations. The current problems are more complex than just dubious banking strategies. I think Lighthouse hits the nail on the head with automotive manufacturing. As the environment becomes more volatile in competition, it's no surprise to find inferior products and strategic planning falling short. The competition has been focussed on global competition, developing lean and agile companies, and delivering products with end-users in mind for years. It's likely we will be saying, "The bigger they are, the harder they fall." The highest returns on investment will be found on small going big and big going small. It's just a principle of entropy from there. Things will stabilize, but people will understand it's an ongoing volitile world where competition is fierce, nothing stays the same for very long, and you need to prepare for the unexpected.

              I am outraged about the auto industry negligence and the impact on our economy. I know to expect friction, but I think this problem in particular was unnecessary. What really gets me is what I've seen in the last few days with the bailout negotiations. I was pleased to see the government send the big three back to the drawing boards to come up with business plans. I was incredibly disspointed to find those plans brought out not much more than production of more feul-efficient vehicles. For what these people get paid, I would expect a lot more substantial innovation and a pitch in tune with emerging economics both short-term and long. The positive is reiterated though. You could look at it as a world of opportunity opening up.

              Best,

              Anthony
            • Re: I'm outraged. Are you?
              polardoggeo Newbie
              You all bring up issues that is on the minds of most! What most people dont realize is just how dissconnected with reality most true CEO's really are.
              Example: 100mil car company is going broke...needs money and help from the laborers....laborers help....Ceo's didnt bother to tell them that the "fixed" costs
              they were helping to offset was the CEO's salary! When was the last time a CEO took a paycut? Thats right they dont. Enron economics still plague us today.
              • Re: I'm outraged. Are you?
                Navigator
                This was a conversation that actually came up between me and a friend this morning. The rich are elevated into a position, and they keep their foot on the lid to make sure no one else can climb the mountain and possibly overthrow them. It's sad to see small business owners struggle to make ends meet, their passion faltered because theres no shoulder to cry on or no do-over / undo key. I strain myself to help these business owners push their limits, to be seen by a new potential of customers through my work at Blitzlocal. While as I may be fed, I look around and see that others are not. I think the below quote sums up how i feel:

                "I'm as mad as hell, and I'm not going to take this anymore!" -Howard Beale, Network