Balance Your Budgets More Prudently and Then You Can Ban the “Vulture” Bankers

Let us face it a culture is strong and so are the leaders who avoid having to deal with bankers or be in their grasp. Do you intentionally jump into a pond with piranhas or subject yourselves to vultures as an analogy if you are in a healthy situation? Of course people of common sense do not do so.

I do not mean what was just written in this article about all bankers being vultures. But it can provide a prudent warning to all borrowers especially waiting on Wall Street and beyond that if you get too close to a banker you can be had for a considerable amount of money.

Governments that balance their books continuously represent sound fiduciary behavior, for example. They are essentially making sure that both current and more importantly future generations are not stuck with a financial millstone. Nothing could be better in that sense.

Greece is the epitome of getting too close to their banker. Meaning Goldman Sachs and no doubt a range of German bankers by which they were milked and/or wrongly advised into longer term “poverty”. Did the Greek leadership who off shored their “payoffs” just say no to these bankers, of course they did not because in the end they were directly and indirectly owned by them.

Too bad they had such a bad elite but is that a reflection on culture or not is the billion dollar politically incorrect question that cannot be asked in the EU? A person who says I will forego immediate benefits so years later I or my community will not be compromised is maybe more instilled in older generations and in Northern European thinking?

But then Greece never was so financially rotten for the most part before it joined the EU and ECB because it was less attractive to be lent before it became a member. The EU financial devil comes to town with bags of money and people jump on it – not a surprise when there is a lack of character and foresight.

In wider modern life it’s called east credit cards even for those with almost no income. Too many being able to get huge student loans for studying in unproductive areas burdening them until their late forties to fifties and risking federal finances if they go ugly. Mortgages going to people who cannot objectively qualify or should have never been advertised to should not get any kinds of of major loans.

Easy money causes gross problems and now it will distort stock markets and create bubbles. Live within your means and stop trying to be so consumer centric and overly leveraged in expanding your business or house etc. You will sleep better in the end even if accused temporarily of being a grinch or unambiguous. At least this advice should be probably born by most though not all.

If you owe to much then you have to kiss good-bye hard earned money to the lender and often frequently. That often means less security even if I will argue when your down payment is not so large . Borrowers often at the retail level pay a huge price accumativeky if not immediately to lenders.

Do yourself a favor if you represent governments or are an individual – live within your means. For governments it is safer and healthier because governments that are not bankrupt have usually reasonable tax balances and offer long term investors more security. Singapore is a reasonable but not perfect example as is Switzerland. You do not see populist uprisings in these places though fiscal prudence is not the only reason.

End of an obvious story to many who do not favor themselves, their relatives or governments being dragged into debt Hades. There are just too many individuals that are there and never had to be so far gone. Prudence, fiscal discipline, strategic thinking and foresight are keys to financial freedom and independence and keeping the financial vultures at bay even the many nicer ones in Brook Brothers and Saville Rowe suits.

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