Provided all the editing goes smoothly, I plan to publish Book 2 of my series on the shift to the Network Economy in early November. In it I will show you the new and also very old rules about credit that will support those of us who make this shift. You will see why the banks as they are today cannot follow. Just as McDonalds cannot make the shift to fine dining or even to a diner.
Here is how the book opens:-
I write this short book for a special person. For you.
You are already aware that the system that we have lived in for generations is unwinding. You are not looking to the job market as your future. You are looking to have your own business.
What you want to do is based on what you love to do and who you really are. It may be that you love to sew. You love to grow things. You love to write. You make things. You don’t want to be Steve Jobs and build an empire. You want to be able to make a living doing what you love. You have no choice but to make this work, for there are no jobs for you.
You know that with the web, there is a market out there for things and services that are real. Real because they are made by you and you can be trusted. You are starting to sense that with this community, you might do OK.
But you have a core problem. Where do you get the finance that you need?
No bank will look at you. No Government development agency will look at you. You are too small and don’t have enough “ambition” to hire other people and to grow. You don’t have a “real job” . You may not own a home. You cannot in all honesty offer up a predictable business plan that shows clear markers of earnings growth over 5 years into the future. They laugh at your hopes that you can make a living by making children's’ toys or by growing vegetables on two acres and a greenhouse.
It may seem that you are stuck. But I promise you that you are not.
This book is all about hope. You will find that there is an entirely new credit system out there that is based on ancient rules of credit that is ready to help you. This book will tell you what it is and how you can become part of it.
Modern Banking is McBanking
You are not the problem for the banks. They are the problem.
They have lost the art of lending and have become like McDonalds, places where unskilled people assemble mass market products using an industrial formula.
Modern banking is only 35 years old. It is not how banking was operated in the past. It is a product of regulatory changes in the 1980‘s. It became a new business that adopted the Mass Production process.
This new formulaic approach to credit was based on a simple industrial algorithm. The job and the home. Our job was a simple way of assuring a stream of income. Our home was a simple way of offering up up collateral. Using these two data points, a banker did not have to know anything more about you. He did not have to know anything about your character or your network. He did not have to know anything about your community or your place in it. Instead he relied on a formula. Like people in the kitchen at McDonalds.
This made sense back in 1980’s when 80% of us had a job. Jobs had become our normal. Back in in 1980, we all aspired to own a home. This all made sense. With such a simple view of who we were, banks no longer had to have staff that understood self employed people and entrepreneurs. We had entered the age of McBanking.
The age of the job is over. We are half way back to where we were in 1800 when only 20% of people had a job. The age of all of us owning our own home is also over.
The core principles behind McBanking no longer work. Bankers, as they are now, cannot respond to the new reality either. Imagine asking a food assembler at McDonalds to cook a real meal from scratch? It cannot be done.
So this is why when you, the Pioneer Personal Business Entrepreneur, cannot be helped by a bank by a government agency. They have not the first idea of how to lend to you because you do not fit their job/house algorithm.
Until 5 years ago, this was an impossible barrier. But no longer. New ways of financing people just like you have been developed and are in place right now. The irony is that these new financing tools are based on ancient principles of how credit has always worked.
The new is all based on Trust and Community.