http://pro.bonnerandpartners.com/BBLFALLINGDOWN39/PBBLR704/Full
Eight out of ten people live in cities or suburbs. Almost no one, not
even the farmers themselves, can survive off of food they grow
themselves. Instead, they all depend on credit. First, the farmer gets a
loan from the bank to buy his farm.
Then he uses credit to buy supplies, fuels, fertilizer, seed – everything.
After the crops are sown, the wholesaler, who got a loan to build his
warehouse and processing center, uses credit to buy the raw food from
the farmer so he can process it and package it.
Then a trucker, who got an auto loan to buy his truck, uses credit to buy fuel so he can haul the food to a retailer.
The retailer needs credit to keep the lights on and the shelves stocked and the stores open.
Each part of this chain can afford to take on that debt because they
know that eventually the consumer will buy that food, mostly likely
using a credit card.
If any one, crucial piece of that chain stops working…
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