It is a cooperative system in which each individual is included in and to their interest. The state does not intervene in the subject market. In Mises’s view, the virtues of market economy are:

1. is based on private ownership,
2. consumer sovereignty (the essence of capitalism is the economic output of the available consumer)
3. capitalism, through competition to ensure their social stimulus (competition catalactică)
4. freedom sits at the base of building economic and social (the individual is able to choose how it wishes to integrate the whole society, economic freedom includes the freedom to err)
5. make profit and the pursuit of the driving force pushing a perpetual,
6. dynamics and ensure its vitality through an ongoing selection process.

The market does not mean a place, but a process, the manner in which the sale and purchase, through production and consumption, individuals contribute to the overall running of the company “(Ludwig von Mises,” capitalism and its enemies “)

A vision of Mises is opposite that of Karl Marx

The financial teachings say that you must use other people’s money to evolve.

“Cash only” strategy is one that can save you right now. I read nowadays that with this crisis, the old school capitalism is dead, and it will be followed by an era of savings.

I personally think that the image of the crisis is too fresh in our minds, so people will be cautions with their expenses only on short term. An middle term they will be lured to enter again in the marketing/buying spiral. Cash only strategy helps you make a safe heaven around you and your finance. The credit card is a bad invention, that let simple, stupid people (which count for 95% of Earth population) to enslave themselves, buying on expense of their future life.

Actually, is a comparison that you can make with selling your soul to the evil one . You get instant reword on the expense of future life Using cash only can help you detox of this unusefull habit. Try for a week to pay everywhere only with cash. Sensing the hardcore cash, will make you more responsible, will make you more aware of the limits of your financial strength. Try hide your credit cards somewhere in the house and fight the instinct to use them. Also, using only cash, you will make a lot of savings.

You will not pay interest rates and commisions, and you will spend less. Because it will be more difficult for you to VISIBLY spend, versus credit card spendings, which are thin air… USE CASH ONLY for a week. And then use cash as much as possible. And after that, use a debit card, not a credit card, because debit card will not let you spend more then your limit

CASH ONLY strategy is good to survive during a recession, like this one, and make you a happy life.

I asked him: “What will happen if AIG will go bankrupt? My bank deposits are guaranteed by state, but money invested in an insurance company are invested in stocks, that are very fluctuate”.

The agent reply, self-sufficient: ” Haha. AIG will never go bankrupt. Is impossible. Is the biggest company.”

Now I have this satisfaction that my question is correct. And imagine that AIG is in shit now WITHOUT a major claiming problem. Imagine that they would had to pay for WTC events now, when they said that have a hundreds of billions of dollars hole.

Well, AIG will not go bankrupt. Because they will not let them happen. If they do, the whole financial system will crush like a pack of cards…

Our economy is so fragile. Dammit