World financial crisis just begin to affect us

The bad news with the financial crisis is not it will continue to spiral down (it still possible, but this catastrophic scenario will not be discussed for now). Sign seems to point to a recovery, but for taxpayer this is not the end it’s just the start. Job lost will not be recovered immediately. Then 10% unemployed will be there for 1-2 years and return to a bit better figure~8% will takes 5 years. Then job seeker will have hard time for some times. In the other hand the taxpayers will need to pay more to pay the large debt the government are accumulating to try to avoid a deeper downturn. Since government already had a not so good financial bottom-line with heavy debt. The bad times make the bottom-line very bad. Tax will need to be higher. But this alone can be sustained. The reality of ageing people will add to government spending and to tax to pay for it. With less and less taxpayer this is pretty difficult to predict how government will be able to prepare their bottom-line for the next crisis.

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Filed under global finance

Why big corporation get bigger and small have hard time

when your big corporation enough you have an impact and then the gouverment comes to your rescue. As the US have done for Banks, GM and Chrysler. They are big corporation then they makes mistakes we pay for it. try it yourself you will pay for it.

your are small corporation or individual you want a contract to some big customer. forget it they require you to be qualified. what this means you need to have business with them for banks, you need to be 200-300 employees that can be send to us (we only takes five  per year but you need to send all that amount of qualified persons anyway). then big corporation only makes business with big corporation and small need to give money to another big corporation to provide service to big corporation .

corporation have reach an unsustainable position and status that most normal person don’t have the law give them advantage you don’t get. Even more they can change name and retart without any trouble when they fil. if you fail you are not allowed to change your identity why corporation can expecially the big ones like GM that just continue under a new ”entity” without most of the debt. how easy!  

 

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Filed under Personal finance