The Advantage of Big Money Capital

I’m definitely going to go into a bit more detail about it, but if I had to sum it up in just one brief line I would have said that the advantage of big money capital is that of its beholders not really needing any more money. This has so many implications to the manner in which anything to do with the financial sector essentially operates and if you take a good look at it, you’ll realise that pretty much every service within the financial sector operates on this principle.

Think about what the requirements to get a loan are. Basically, if you wanted to get a loan from a bank you’d have to prove that you don’t need that loan. Of course there are degrees to this general rule, such as the fact that you can offer up your future earnings from your wages as surety that you’ll be able to pay back a loan granted to you and if you walk into a bank seeking a loan, chances are you really do need it for something.

That’s the case for personal loans and the likes though – if we’re going to talk about business loans to start your own operation in the financial sector itself then it’s a different story altogether. In this case it comes to the fore just how money is allocated only to those who already have a lot of it to start off with. I mean if you wanted to start up your own insurance company for example, you’d need cash reserves of at least 12m GBP, depending on which sector exactly you’re targeting. That’s just cash that you have to have lying around and it’ll be “locked away” in some vault to be kept as a safety net for the consumers you’ll be targeting with your insurance services.

Now this shines a spotlight on everything that’s wrong with the very concept of big money capital because what it rightfully suggests is that the biggest and best opportunities for economic advancement are reserved for those who don’t really need them. I mean imagine if a final year university student was given the opportunity to manage a hedge fund, if only for the experience…

Fat chance of that ever happening though because it’s clearly a system of greed which we all keep feeding into. The saddest part of it all is that the people in their many numbers just don’t know how much power they collectively have in their hands. Just thinking about the spending power of my fellow uni colleagues makes me wonder why we can’t all just get together and exercise a little bit more power through our spending habits.

If we really wanted to, we could be one mega big money capital machine, shaping the markets and keeping tabs on the prices of everything we blindly consume, thinking we’re at the mercy of the producers.

Big money capital holds the advantage of essentially having a head-start in addition to a huge safety net.

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Tim Spafford

Tim Spafford

Tim is a student who works hard to get a degree in finance and build a successful career in business consulting. Being a student and living in London Tim has a real-life experience in budgeting, saving, money making, traveling and having fun.