It\’s amazing that an accounting Professor gets this so wrong.
The fledgling economic recovery requires that more spending power be placed in the hands of normal people and small businesses. All political parties should look at the operations of the insolvency industry, which is enriching itself at the expense of normal people.
The point of an insolvency, of a practitioner in it, isn\’t to get back as much as he can for the creditors.
Sure, it\’s a nice thing to do, they have a duty to do it as well. But that\’s not the actual reason that we have the system of bankruptcy and so on at all.
The aim is to get the productive assets out of some limbo where they cannot be used into a position where they can be. We simply don\’t want productive resources, whatever they are, labour, buildings, piles of steel or whatever, to be sitting around while someone tries to get the best price for them, or while there are arguments about who owes what to whom and so on. We want them flogged off and being used by someone else as fast as possible.
For the very definition of wealth creation is the movement of productive assets from low productivity uses to higher ones.
Insolvency methods are therefore the tail end of the process: it\’s the bankruptcy and the reallocation of the assets that is the important part and thus the part that we concentrate upon.