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There is a book – I don’t know how it could be found now – but,

It is called, “Corporate Finance and the Capital Markets”, Harvard Business Review, 1991 (and several other years before – and after). This book is created (crafted) by individual articles, which the book explains –

“The ‘Harvard Business Review‘ articles in this collection are available as individual reprints. Discounts apply to quantity purchases. For information and ordering contact Operations Department, Harvard Business School Publishing . . .”

There is an interesting quote in the middle of the page – on page 57, in the copy of this book from 1991 –

“Businesses relying heavily on working capital loans that are rolled over each year should consider this question: What will we do if the lender terminates the arrangement?”

The article goes onto the next page – where in item 3. along the page, there is a quote embedded, “Risk of the loss of operating autonomy . . .” and in item 2. “What happens if the lender terminates . . . If your response is, ‘ Our lender would never do that,’ then you do not have a good answer.”

– these quotes are found in an article by Jerry A. Viscione, entitled: “Growing Concerns – How long should you borrow short term” and explains why it is risky to use leveraging over extended periods for short term problems of asset management. Well, the risk is what has happened now . . .

This book also has a lot of other really great articles – there are more current versions of this, I’m sure. I crawled up into my attic and brought it down last night. The very first article in the book is very interesting and provides a glimpse into the thrust to create corporate entities without public shareholding – without “real” value of the nature that many corporations have now become – especially in banking and finance.

My opinion may or may not count for much – however – having heard this morning about the desire of some US En= Economists and Macro-economic specialists including some government influencers among the bunch – {to emphasize restoration of “confidence”} – What is that? Are there men and women that genuinely believe that value to the American economy entrenched in dualities as it may be, constitutes no more or less than “confidence”?

It reminds me of a game of marbles where a bunch of eggs are lined up across a line in the sand. Then, each participant has the opportunity to take one shot from quite a number of feet away – (20 feet, 10, feet, 15, feet – any farther, it gets really hard) – and in this game, the broken eggs count as one win each -therefore,

there is a lot of “confidence” going on before the game ever gets started. The reason for this, because the winner gets ALL the marbles of course. And there can be as much as tens of thousands of dollars (and other toys) placed on the game. – On one shot – (or by agreement, on best of five shots).

Can you imagine how far “confidence” goes in this game? Yep, that’s about it, too. If you can imagine, a bunch of grown men and women bent over in the dirt shooting marbles from their thumb and forefinger or pointer finger to bust eggs in the dirt – Yeah – Confidence is NOT what makes the difference by a long shot. It is skill and practice, knowledge, understanding, wisdom in some measure and a reasonable knowledge of people’s behavior and the science of eggs. It helps to know how to properly hold your marbles and shoot them where you intend them, too. Most bragging goes on before with (confidence) and most practice, seems to happen thereafter (when I beat them at it.)

And, on on on on on, and on – it goes. If it isn’t eggs, it is something else and the winner leaves with everything on the table. That is where “confidence” may do some good – when you are bluffing but not when the person with the winning hands put the cards on the table and takes all your toys and moneys and anything else you have put on the table.

That appears to be what has happened. The only thing I can think to do about our economic situation is to re-create its current value sets in “real values” resting firmly on the traditions of hard assets, products, manufactured products, knowledge, information assets, client databases, processes, business and manufacturing equipment and processes, and generally tangible things like that. The faster we can do this and convert our national economic and business assets into these tangible “real” liquid and semi-liquid permanent capital assets, the faster things will get better.

Properties are also a good basic foundation for our businesses to base their values on something tangible and “real”. These properties assets would include plants and industrial complexes, physical land and offices, corporate campuses, and intellectual, creative, process, information, and database properties that are owned or used by their businesses.

The other ideas being bandied about which indicate that we can continue all pretending there is really something propping it up and be “confident” about our dollar buying something is pretty clearly thinking that has inherent distortions of reality firmly entrenched in it.

I genuinely believe that EACH and EVERY – ANY and ALL Financial “Experts” should get this book – particularly a copy of these articles from 1991 and before – then commit to LEARN _ LEARN_LEARN and UNDESTAND ALL of it. – There is no excuse for the twisted ignorance of thought we’ve all watched over the course of this last few weeks and for the years of factors leading u-p to this.

Understanding the principles of these matters is critical to understand the markets and market factors that are being discussed. One last thing –

“Does it really matter if you use the ‘B’ word or not when we are having a ‘Blizzard”? Is it really changing reality to not use the word ‘Blizzard’ when the snow is coming down so heavily that to go out in it is dangerous? Honestly, the macro-economic facts are facts. They are extensive and sitting over air off the cliff right now. While it may seem to a superstitious lot, that saying so will make it fall, hasn’t it genuinely been way past that awhile? We already know the fudging to make labor statistics appear better than they are. We can watch around the neighborhood or ask around and easily find there are many, many people having cars repossessed, homes foreclosed, credit cards maxed out, 401K money and savings depleted and the numbers are staggering. The word RECESSION does not make it one and the likelihood is that we are in something far worse than that. The faster we get on with making substantial and tangible changes to shore up the real marketplace and its real factors, the better the changes will take hold, and the sooner everything will get better. Momentum is easier now than it will be six months from now and our business leaders dear to us all – need to get busy.”

– quote from Cricket Diane C Phillips, 2008

Cricket House Studios – Atlanta – GA – USXA1