tag:blogger.com,1999:blog-2277215496195926573.post8788077033872665869..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Osborne gives £200m to unviable business, paid for by viable businesses – pure genius.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-40955127660156185722012-02-16T12:09:49.760-08:002012-02-16T12:09:49.760-08:00Agreed.
We have this clever mechanism to decide ...Agreed. <br /><br />We have this clever mechanism to decide which businesses should succeed or expand, it's called "allowing the consumer to spend his money where he likes" and we need absolutely nothing more than that. We do not need investment managers, analysts, civil servants or even bankers to decide how to allocate capital - the consumer does it for us, for FREE!<br /><br />And the best source of finance of all is retained profits, not new equity. Sure, businesses start off with 'equity' i.e. what little cash the founder can scrape together, by and large, retained profits funds everything after that. That way, businesses don't over-expand and go pop again, they just chug along.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-79418012052279264422012-02-15T01:05:55.183-08:002012-02-15T01:05:55.183-08:00"Thus SMEs which whine about difficulty in ob..."Thus SMEs which whine about difficulty in obtaining loans need to catch up with the new reality."<br /><br />Absolutely. In every case I've seen when you look under the surface you see a non-viable business plan or one that only works if they can use somebody else's money for free.<br /><br />What these SMEs need is equity investment, not debt.NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.com