Well, not exactly – rather we shall play a slightly modified version. Instead of matching different profiles to people, I will provide just one set of characteristics and a multiple choice to pick a correct answer at the end. Ookey-dookey, here we go!
This financial being…
- Never produces/makes enough to support himself/itself and his/its dependents.
- Yet, it habitually spends more than he/she/it can afford.
- To sustain his/its spending habit it constantly takes money from others – people and institutions.
- When the time comes to fulfill payment promises he/it gets money from another place and pays the old outstanding amounts, thus replacing the old obligation with the new ones.
- To keep appearances and convince everyone that everything is fine, he/it acts very confident, as if he/it is on the top of the world and his/its own dealings are in perfect state.
- In the process of such activities, he/it pulls into this bullshit game everyone who depends on him/it, exposing them to the future financial problems.
- Eventually he/it runs out of places and people to take money from – some or all obligations remain unfulfilled.
- As a result, the entity looses his/its official and unofficial creditability and has to suffer punishment and/or public humiliation.
- When that happens, the entity acts as if it does not understand why it happened and claims it to be a misunderstanding on the part of those responsible for punishment.
- Of course, those related to the entity, whether formally or informally, closely or remotely, directly or indirectly, all get hurt.
- Under the new conditions, it is even more difficult for the entity to survive; the game of obligations replacement becomes more and more expensive, further deteriorating the financial situation.
- Yet, he/it tries to put on a smiling face, hiding from the rest of the world that the worst is yet to come and that a complete bankruptcy and collapse are just around the corner.
Who or what is this financial being? Please select the correct answer:
A. A credit card junkie
B. A Ponzi-schemer, such as Bernie Madoff
C. US Treasury
D. All of the above.
The Frustrated CFO 