Our entire financial system is a Fing Ponzi Scheme!

[MuscleMcMannus]

So all over CNN and other new sources they will not shut up about how businesses won't function unless they have access to credit i.e. debt/loans.  Basically most corporations and businesses don't keep "cash" on hand.  Kind of like an individual not putting any money into a savings account.  Instead they use their "profits" or excess money to "invest" in other things that bear profit.  So several things:

1)  Not only is their own profit not enough......they have to invest it to make more profit? 
2)  Our entire economy from small businesses to major corporations rely on credit to function?  I.e. pay employees and cover operating costs?

Something seems terribly wrong with this picture.  I'm not a business major but to me a solid business should be run very simply.  You take your profit pay your expenses, save what you have left over to grow your business but also put some away for a rainy day. 

Seems to me like the entire business model of 21 century America is FUCKED and unsustainable!  Year after year growth?  Other people's money? 

Someone who is very knowledgeable in business and owning/running a business chime in and offer your expertise?  I.e. explain the term cash on hand and why most companies don't like to have cash on hand and actually run up huge debts? 

[24KT]

This entirely depends on the type of business and the overheads required for them to function.

If you're looking at manufacturing, cash on hand is not always (very rarely) a viable option.

A service business could do it alot easier, but then again, it also depends on the service, the size and scale of the operation.