Definition of Philosophy

The Bailout Philosophy in Crisis

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The bailout trends we have been hearing and reading are indeed something worth looking into. The world is at a crisis and much as we want to do our share, it looks like the fate is left at the hands of people in power in the government and countries that control the monetary system. Businesses are desperately seeking lifesavers and from the looks of it, the bailout philosophy aims to save them from drowning in debt.

While that is a given, you would have to think where the money is coming from. You can assume that these cash reserves were controlled for a purpose and for sure, that purpose is not for crisis to which many did not initially see. These monetary reserves were set aside for something and as an economist, you would think where they would get the money in case they start to be in need.

But frantic as it may, it seems that the problem at hand needs to be addressed. Everyone is panicking and worldwide recession is imminent. So with that in mind will the bailout philosophies work? If so, for how long?

We see the current crisis we have as something that is surely pushing us to the brink of poverty. But while we acknowledge the efforts from the world leaders, when will they get the returns from these borrowed lump sums? Businesses need the boost but as far as these loans are concerned, you would have to think that we may be in for something rougher ahead.

Originally posted on October 15, 2008 @ 4:28 pm

The Philosophy of the U.S. Financial Bailout

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From the eyes of an ordinary consumer, the financial bailout is bound to point to only one thing, save the debt-ridden country from collapsing and nothing else. If only that were the case in doing business then perhaps we would have seen a lot of businesses surviving and economies rising. Sadly, the philosophy of it all is that business is done more than plain business.

There are more business components to consider. One of which is business policies that are sure to be varied, depending on the philosophy of the management team tasked to establish the business venture and create a profit overall. If something goes wrong along the way, you are sure to note that it is not plainly a matter of infusing cash and paying off debt. For how can a business go on surviving if such debts will just accrue over time?

Also, as far as the recourse provided by the government is concerned, it is more than just paying off debt. In exchange, various arrangements such as a stake in the company in the event they fail to settle their financial bailout loan is pegged as one of the key highlights in exchange for a loan. Is that feasible?

As far as companies are concerned, it may be the last hurrah for them. Rather than filing for bankruptcy, they are left with little choices. So in the event they still falter, then the company may give way to political power. If that would be the case, at least they tried and now pass the problem to the government powers. In the end, it is similar to applying a loan using your business as collateral.

Makes you think of the government has a dirty hand in it all. But if that is the philosophy they are applying then they just have to honor it, especially if they sign on the dotted line.

Originally posted on October 9, 2008 @ 3:17 pm