Why Cashflow Matters?

 Lets say you line up a thousand business operations, and you ask them....how much cash is flowing through their business, and you reach a magic number of 'X'.

Weeks, months and years pass. 

Now you assemble the thousand business operations and ask about 'X', and it's just not the same as it was twenty to thirty years ago.

Fewer trips, fewer vacations, fewer boats sold, fewer motorcycles, fewer quad-bikes, fewer couches, fewer renovations, fewer second vacation residences, fewer 'toys'.  

What you start to notice...back in the 1990s as college debt started up....people found themselves in a dilemma and they couldn't get the 'toys'.  

Same issue.....1990s....credit debt creeped up and while they made up for the college debt situation by having plenty of card-cash.....they eventually reached a point where the credit cards were maxed out.  At this point, they were paying $700 a month....to just keep the debt contained.  If they wanted to ease the credit card downwards....they needed to make a $1000 payment month, and that kept 'toys' to a minimum.

The guys who avoided college debt and credit card debt?  They survived, and for the most part....they kept buying 'toys' and keeping the economy appearing 'safe' and secure.  It was the wrong way of looking at it....but hey....that's life. 

So presently, with Covid, and serious Fed use of free-money.....are we in a cash-flow mess?  More or less.

It's presently reached the point where some banks don't even want to do business with small business operators....because there's simply not enough business to pay for the services or expectations of the bank.

So you might turn at this point and suggest something stupid....like let's pay off the $80k college debt of these foolish folks.  Where would the $80k of rescue money come from?  Well....printed cash from the Fed....of course.

Getting deeper into pit? More or less.