March 13, 2009
Forgive the debts of strong business so that they can begin operating on a pure cash basisPosted in Your Ideas ·
With prices and profit falling (as it must in a bust), it is not a good idea for business to be working on credit (think of leverage realities). They must become pure cash businesses. And legislation should be brought in to ensure every business gets paid immediately (not 30 days etc).
Credit is only a suitable way of operating business during a boom. NOT during a bust.
Also, with businesses operating on a cash basis, it will become obvious more quickly which are not viable. So the creative destruction process can occur as it is meant to.
Btw, another boom cannot get going again until all debt is paid down. Let\’s get going on that asap!