|Money Owed Can Be Like A Mirage Always In The Distance|
For an individual the rules are different than the rules that govern a company or business but even after stretching out payments and outright default options exist. Bankruptcy can give those reaching the end of their rope a new lease on life. I feel sorry for those of us who have found themselves in the position of having to decide whether to most throw good money after bad by taking legal action against a debtor in the hope of recovering even part of what we are owed.
Companies and business in general play by a set of rules that can boggle the mind. Other than not meeting their payroll a situation that is immediately noticed, they can bob and weave in a series of moves to hide their true situation. Bringing in a new investor, shafting a current supplier after a big order and replacing them are just a few ways to extend the life of a dying business. By stalling on paying bills a business can claim it is still solvent and reorganizing will set everything straight. If done correctly the top management can collect paychecks the entire time this unfolds. Debts unpaid are more than a transfer of wealth it is theft.
Government's can also play this game. They sell bonds, print money, make promises, and can even borrow from groups like the IMF. The Bottom-line remains that after all is said and done debts that are not paid still require someone has to write down their wealth and take a loss. The tool of reinventing what a debt is and how it will be paid is very useful. A key issue in deciding and controlling how debt is handled revolves around the issue of contagion. When the debt holder realizes that they will not be made whole, how they adjust paying their debts because of their newly gained knowledge can upset the whole economy. A big collapse without much notice that surprises the world can make a big wave that is unacceptable.
Those in power tend to constantly move the goal post wrapping the changes they make under a banner of reform. It sometimes appears that the laws covering bankruptcy were devised to drag on and on so as to lessen the blow or take sharp edges off reality. Often after years of chasing a bad debt, the person or group owed a sum of money has in reality moved on and adjusted to the fact they are likely to recover very little of what they are owed. Modern society has become very good at kicking the can down the road and delaying the day of reckoning. Yes, the part where you collect a debt that you are owed can be similar to a mirage that keeps moving away each time you approach it. This means that at some point the return on loaning money is simply not worth the risk!
Footnote; This post dovetails with many of my recent writings. Other related articles may be found in my blog archive, thanks for reading, your comments are encouraged. A more recent article delves into why people might simply stop lending,
Yes, the most shocking thing in the debate was when Obama lied deliberately to us about what he said in the Rose Garden and Candy Crowley inappropriately backed him up. A gloating Obama chimed in, “Can you say that a little louder, Candy!” He later scolded Romney about how “offensive” it was for him to question the administration’s selfless intention. But even the hyper-partisan press could not sanction this lie for long. After the event, Ms. Crowley quickly backtracked, admitting that Romney was “right in the main.” This is like in an umpire deliberately getting in a runner’s way, calling him out during a decisive World Series moment, then admitting the call was blown at a post-game press conference. Benghazi, the White House cover-up and an enabling media offer a microcosm for the whole Obama presidency. His economic policies have been wasteful and counterproductive; doing more to buttress cronyism than bring recovery. His social policies radically depart from traditional American values. Obama’s foreign policy is in shambles.
Obama came out on the anniversary of 9-11 speaking about the fact that we would not run run from terrorists and making no reference to Benghazi. the White House then sent Susan Rice out on 5 occasions to tell the news media the attack was due to a video, Hilary Clinton said the same, Obama said the same to the families and then he went before the UN and said 8 times, the problem was the video. At the debate Romney asked Obama if he had come out immediately and called the attack what it was seen to be by the White House Security, a terrorist attack in real time. Obama looked right at Romney and lied and said he did say it was a terrorist attack. 60 million people saw this man just sit there and not tell the truth. Romney looked stunned.
Why did Candy have a copy of the”transcript” of that one Obama Speech? And how did Obama know she had a copy of the transcript of that particular speech, he asked her to refer to it. Sounds like somebody (Obama) knew what the question was going to be, and sandbagged Romney by ensuring that Candy was going to have the “transcript” on her table and believed the answer Obama was going to give. Then the drama, Obama: “Please proceed Governor,” and Obama: “get the transcript.” How did Obama know what the question was going to be and how Candy would reply? Candy was the only one who picked the questions. What other documents did she have? Us with inquiring minds would like to know, and why is no one asking?
From the transcript on the Wall Street Journal site: "No acts of terror will ever shake the resolve of this great nation, alter that character, or eclipse the light of the values that we stand for. Today we mourn four more Americans who represent the very best of the United States of America. We will not waver in our commitment to see that justice is done for this terrible act. And make no mistake, justice will be done." To clarify, in this transcript of his speech Obama did not call the 9-11 attack in Benghazi a terrorist attack. When you watch a replay of the debate it is clear the American people are being set up and mislead. This was a cover up by the Obama administration because it was too close to the election and it has blown up in their face.
In all 3 debates so far, the democrat has had several minutes more to speak than the republican. Obviously mainstream media is backing Obama, but the public is favoring Romney anyway, we could be looking at an election where Romney gets a majority of the vote yet Obama stays in office because of the electoral college. The media and the public seem to be viewing the debates as the MLB World Series. This is not a best of 7 game were playing here. Who wins the debate or blasts his opponent with a knuckle sandwich has no bearing on the outcome. The content of the candidates has become boring, predictive and a lathering of fixed message points hurling "you are bad" epitaphs at each other with little substantive content. It's not only America that is playing this distraught game. Governments all over the world are plunging into theatrics with hands waving, waiting for the audience applause. It's the wrong game at the wrong time and it's a very sad comment on our culture.
Footnote: As an update August 1,2013 A fair amount of time has pasted since this post and many new developments have taken place. For a bit of an update as to where we have moved see the posts below or please search the archive.