Eternal Debt

BBC NEWS | Business | Woolworths enters administration

High Street legend Woolworths has buckled under its debt and is set to go into administration, BBC business editor Robert Peston has learned.

Isn't this what happens when eternal debt becomes an accepted business model? It used to be that you started a company and had to make a profit to be successful. Now you just start a company, borrow and lose millions of pounds each year, and tell the shareholders that you predict massive profits "next year". So many companies that appear "successful" on the surface are actually millions of pounds in debt but think they can just carry on regardless. This should serve as a lesson to companies that it's not ok to run a business based on debt.

Oh and what's the deal with everyone being so gutted and sad about the loss of a corporation? When they do well the staff and bosses are praised for doing such a great job, but when they fail it's because of the "markets" or whatever. Nothing to do with the decisions they made...

Technorati Tags: woolworths, credit crisis, debt, capitalism