Credit Crunch & Why it Happened!

I truly believe the credit crunch should never have been allowed to happen, but the powers that be were too involved with their own self indulgence and they overlooked the glaringly obvious possibility of a melt down in the money markets!

Now this may sound a little on the strong side but I will explain, the markets are run by and mostly owned by the rich or big companies who have access to those sorts of funds! Now what happens when they see the growth slowing and their profits falling? They either panic and sell sell sell or they weigh up the situation and move their stock around to protect themselves, there are some who manage to see all this before it happens and be in the right place at the right time and make lots of money no matter what but the overriding fact is that it is usually the same people making the money, now I find that a little strange, well I used to!

Now I have my own business and see a little further into the working of the money world I am beginning to see how to make money no matter what is happening in the world and so can you if you want to that is!

Let’s look at an example business to see if I can explain why the credit crunch happened and then we can move on to how to manage yourself to make sure it does not happen to you!

Please note this is a very simple view of how thing work!

So we have a business against which we borrow money from a financial institution, we then expand and borrow more money against the business as it is making a profit we keep doing this and expanding at a very fast rate, then we find we owe the bank millions if not billions, that money has come from the banks resources such as stock dealing, mortgages, markets or even borrowing from their respective countries main bank!

We find the market loses confidence in us and won’t lend us any more money, we find the that we cannot only expand but actually have to cut costs (jobs) to repay what we have borrowed and because we cant expand and get more orders we cant get any more revenue so the lenders lose more confidence and put our rates up we find the we cant afford even to pay our staff let alone suppliers because all we can do is to pay interest on our loans, eventually the company will go into administration and go bust, the lenders basically get most of what is left over when everything is sold off, the suppliers, the staff etc walk away with very little, the banks however can’t go bust if they lose too much money they go running off to the respective government and beg mercy and the tax payer ends up paying for the banks mistakes.

So who wins, well the owner of the business if he was savvy would have paid himself a healthy salary and his directors would have had good pay offs, the rest of the staff however (usually also the tax payers) lose not only their jobs but also maybe their homes. The banks still make money, the business men (the clever ones) still make money and all that debt eventually gets written off so that the rich stay rich and the poor have to start again!

Ask yourself a question we hear of businesses all the time making money, some making billions and yet those same companies are in debt HOW! Because the profits are paid out to the rich share holders and not to pay off the loans they received to build up the company to level it has become! No they just borrow more money to make bigger profits to pay shareholders more dividends, the banks and governments may as well just hand over the money to the rich directly and save lots of time and trouble! (Because most of the money banks lend out comes from the taxpayer initially).

It is a vicious circle and you need to get out of it!

Now to protect yourself form this you need to become savvy in the ways of the business world, you can do it, it just takes a bit of effort and work!

Here we go then this is how- find a product that is worth what it actually says its worth! Work on yourself to become better than you are, work to find people who think like you and want the same thing (success), find buyers etc, enough I hear you say that’s a usual business plan! Yes it is, but the clever way to enable this is to work smart not hard, I have very little overheads, no stock to carry, no debts to secure, I own my own business but have no risk or very little risk and I learn from others who are successful!

My online business plan is easy to use and has very little risk attached and it is credit crunch free! And most people can do it and be successful if they put the work in!

But I am not here to show you my business plan but to show you that you can change your circumstances and become rich or wealthy without having to work every hour of the day!

I market online to millions if not billions of people every minute of the day and yet only work a few hours a day, by showing others how to do this successfully I can receive small dividends or affiliate sales, they also can show others and receive dividends, this can grow exponentially and some people who I show go on to earn a lot more than I do because they work harder! Now I believe this is the right way to do things, lets take another example, lets say you run a shop and earn £10,000 per year from it now you can open longer and work harder and even employ staff but your overall earnings will only go up slightly, but if you show someone how to run that shop and then go on to open more shops and those people go on to do the same you may only earn say £1000 per shop but if you have 500 shops in your chain then you are actually earning £500,000 for the same amount of overall work on your part!

Now take away the shops and work online with those principles and you will become successful!

You must be teachable but you must also teach!

You must be positive and learn to stay positive when all around you are negative!

You must be willing to take that extra little risk when all other stand back to stay safe!

You must be confident in a world with little confidence!

Be flexible in an inflexible world!

Only listen to those who are already successful and never to doubters because doubters are not very often successful!

Use your dreams and aspirations to fire you into action and never waver in a world that only knows how to make waves!

We have a western society that only knows how to chase itself around looking for more and more money all the time, do not fall into the trap of chasing the money you WILL FAIL.

Look at it this way the more people you teach to be successful the more successful you will be!

The more time you spend making people successful, the more successful your time will be!

Seeing that the summer is here, think about this – every seed sown can grow into a beautiful plant if it is cared for properly, and once it has grown it then can sow its own seeds to proliferate and expand its species (chain)!