audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Actually, we are starting to hear those stories of businesses who will not get renewal on loans or are unable to execute on plans due to the credit crisis. I expect these stories to become more and more prevalent as the credit crisis extends. I'm concerned about the snowball effect and resulting panic that cause things to happen much more quickly than anyone expects or is prepared for.It seems to me that a "credit crunch" should hit the heavy borrowers first. We should be hearing today about companies with fine sales and healthy profit histories who have to lay off workers simply because they can't get loans renewed. This should be happening months, even a year, before the "average" companies are impacted. When those stories add up, and someone with credibility can show that we've got a million unemployed (less than 1% of the labor force) just because their healthy employers can't get loans, then Joe Sixpack will conclude that his job is at risk due to credit problems.
I honestly can't say whether the government action at this point will avert this credit crisis or help improve the situation significantly. I'm stuck on the point of who is willing to lend and what is the most direct way to avert the credit crisis for main street. Seems like right now only the US government is willing to lend.
Audrey