Feeling Stimulated!

[BlueStreak]

Originally Posted by whell

I hope that's true, but I'm sure not seeing it. Could be that I service clients in the Midwest, and primarily in MI, where the economy still lags and where - at least the clients I work with - are still stifled by lack of available credit financing.

Why are so many business folks always living on heavy debt? Always scraping by on someone elses dime? Or begging for bailouts? Or both? Bitching and whining about how everyone on the planet is responsible for their business suffering----well, everyone but them, of course. You'd think someone like that would have better personal responsibility and learn to be more self-reliant--damn Republicans.

Dave

[whell]

Originally Posted by BlueStreak

Why are so many business folks always living on heavy debt? Always scraping by on someone elses dime? Or begging for bailouts? Or both? Bitching and whining about how everyone on the planet is responsible for their business suffering----well, everyone but them, of course. You'd think someone like that would have better personal responsibility and learn to be more self-reliant--damn Republicans.

Dave

Dave -

I suspect some of the above is tongue in cheek, but:

Its not an issue of "heavy debt". Business owners use credit as a business tool to support cash flow. Instead of tying up their cash assets, they use debt to finance expansion, replace equipment, even fund payroll if they need a bridge to get over some accounts receivable issues (slow payment is almost a way of life these days, unfortunately).

Most businesses have / had a line of credit with their banks to provide easy access to credit funding when needed. Many banks have been forced to change their underwriting terms, in some cases whether they wanted to or not. Many of the clients that I've spoken with have had their lines of credit restricted or shut off. Therefore, they have to change the way they do business to accommodate this new reality.

[BlueStreak]

The entire post was tongue-in-cheek.

On a slightly more serious note; Maybe it's good that some of them have had their lines of credit restricted or shut off? After all, risky loans going to people who fail to repay is what caused this whole mess in the first place, isn't it?

Dave

[BlueStreak]

Originally Posted by whell

Instead of tying up their cash assets, they use debt to finance expansion, replace equipment, even fund payroll if they need a bridge to get over some accounts receivable issues (slow payment is almost a way of life these days, unfortunately).

Precisely. A "bridge loan". Kind of like a mini-bailout, right?

Dave

[whell]

Bailout = saddle the tax payers if the bailee (Bail Outee? As opposed to an Inee?) fails to pay.

Line of credit = short term financing from a bank.

Yeah, they're the same in a different kind of way.

[whell]

Originally Posted by BlueStreak

The entire post was tongue-in-cheek.

On a slightly more serious note; Maybe it's good that some of them have had their lines of credit restricted or shut off? After all, risky loans going to people who fail to repay is what caused this whole mess in the first place, isn't it?

Dave

Risky loans were generally in the housing market, not business loans. Separate from the housing mess, I think the banks were generally satisfied with their relationships and underwriting requirements for most of their business clients. And that book of business for banks has been generally quite lucrative.

[BlueStreak]

Okay, Dude. I enjoyed todays bantor. But, now I must go "grease the wheels of capitalism" with my proletarian blood.

Have a great day!

Dave

[merrylander]

Some years back Florence had her own Temp/Placement agency with some 80 employees. With the placement side you would be surprised at the names of some of the big corporations that tried to cheat her out of the finders fee.

So all of the business bashing has some basis in reality.

[noonereal]

Originally Posted by merrylander

Some years back Florence had her own Temp/Placement acency with some 80 employees. With the placement side you would be surprised at the names of some of the big corporations that tried to cheat her out of the finders fee.

So all of the business bashing has some basis in reality.

big business = big thieves

[piece-itpete]

Gotta love temps - when you're done with them you just toss'em in the dumpster

So, we spent 800 billion to lower the deficit how much?

Heard this morning that foreclosures hit a record.

Pete