Much ado about Lemons
http://phistars.blogspot.com/2011/12/much-ado-about-lemons.html
Much ado about Lemons
I bet you all where imagining that I was gonna write about the Lemon fruit.But No! Nononono!! This one is about the "Lemon" concept. This concept explains a lot of super annoying things that are gonna hunt you in this terrible economy. Ok, first I will discuss lemons car wise. Lastly, jobs and lending.
Car wise, used cars are separated between good used cars and lemons. The seller is the only person who knows what the hell is wrong with the car. Buyers are usually suspicious of used cars cause they think they are lemons (or defective). In turn, most buyers prefer to buy new cars instead of old ones. They are afraid to buy a car and be forced to spend more than what they payed for it. So, most folks usually assume that all used cars are lemons.
To solve the lemon problem, sellers of used cars rely on company names. Like Ford and stuff, they give money back guarantees ect. Plus, you can sue the major companies if they sell you a lemon. However, if you are not the owner of a major company then you are screwed.
Ok, this lemon problem can be easily applied to other things. Now lets analyze the lemon problem job wise. In this day and age, unemployment has become a global pandemic. People are loosing their jobs left and right. I shall not go into the reasons for this pandemic(that's a subject for another blog). Its is not too uncommon for people to go without jobs for months,even years . The longer you are without a job the harder its gonna be to get employed.
Here is were the lemons come in. Good workers are mixed with lemons. When employers check your resume, the distance from your last job sends a signal to them. The longer the gap, the more you start to look like a lemon. For this reason, employers prefer to hire people that are currently employed elsewhere. Your inability to obtain a new job for a long time, makes employers suspicious.
To rid yourself of your lemon pledge smell you must prove to them that your not a lemon. This is done by getting a fancy degree. If you cannot afford collage at the time, then put on your resume that you been doing bit jobs here and there. Worst case scenario, get a job at MacDonald and then apply for your desired high paying position. Whats is important is that you do not look idle! At least pretend to have been doing "something" other than looking for a job.
Now onto, banks. Banks have a hard time telling good lenders from lemons. Once they give out the loan, they have no power to control what you do with the money. At best, they can only rely on credit ratings. However, lemons can build up really good credits and then default on a giant loans. Banks usually get rid of the lemon problem by giving out a lot of high interest loans. As long as the interest is paid, then they are ok. However, when the depression hits, not only the lemons but the good lenders start defaulting. Thus, the anti lemon maneuvers become the banks undoing.
A good example of a good credit lemon, is a shadow bank. A shadow bank is an agency that does not take deposit but gives out loans. These shadow banks take out loans from regular banks. They then give out loans to people with bad credit rating at higher interest rates. You know, like loan sharks. Thus, the shadow banks indirectly burden regular banks with millions of lemons. Taking all this together, we have ended up in this terrible mess.
So, this is all I have to say about lemons. I hope that you think twice about making a lemonade. I hope this has shed some light as to why you can't sell your car. Or the reason why no one will hire you if you are unemployed. Plus, the main reason why you do not get a loan despite having 800 credit rating.
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