This is a story about bad debt...

When a person or an organisation defaults on their debts, it affects their credit rating. For a company, their bonds will be 'junk' and as such, they are not considered investment grade. It will be much harder and much more expensive to borrow money if you've defaulted on debts.

Arguably, life would be much easier if we could all borrow money at close to 0% interest, directly from the central banks. We could go on a non-stop credit binge of epic proportions. Buy now, pay later.

But what about It's a Wonderful Life?

In theory, a bank takes deposits from savers and lends out the money in the form of loans, overdrafts and mortgages. In theory, if you default on your loans, you're risking people's hard-earned life savings.

Of course, the banks should hold enough reserves and do enough know your customer checks to make sure that they're not lending to hopeless idiots, with no sense of a moral obligation to keep up the repayments on their loans. In practice, our demand for relentless growth and ever greater profits, means that the banks have done a shitty job of being able to withstand sudden spikes in distressed debt: people losing their jobs and businesses going bankrupt, for example.

I'm sympathetic towards people who lose their jobs through no fault of their own. I'm sympathetic towards people who can't work because of sickness or disability. I'm sympathetic towards people who are honest and hardworking. I'm sympathetic towards people who need a break.

Banks have to put up with a certain amount of fraud and a number of reckless bankrupts. However, what about the idiots who shouldn't even be in business, because they're hopeless with cashflow; careless, unrealistic and dishonest? Well: it's pretty hard to get a bank loan unless you're a credible person with integrity.

So, why borrow from me? I guess because I trust people and I expect them to act with common decency.

Actually, the only thanks I've gotten for my trust & generosity is the pile of soil on my floor, things taken from my apartment and being ignored on Facebook by a couple of entitled moochers; bankrupts; parasites.

This is my message of Christmas cheer. I'm in a financially precarious situation, not enjoying the festive season as much as I should be, because a couple of entitled parasitic people picked my pocket. They'll go and stay with their mummies, in the bosom of the family home. I don't have that option.

Tags: #london