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Our home equity line of credit got slashed by 33% about 6 months ago. WAMU trying to fix its books no doubt.
However all of our business lines of credit and credit card limits have not been reduced. Since we pay all cards off each month we don't anticipate any problems.
The market has eaten some into our profits, however our principle is still good. With all of the really great companies 'on sale' right now, GE, IBM, FDX, etc., it will soon be time to go shopping, so save some money if you can.
My consulting business actually gets busier in crisis times with aircraft coming off lease.
I find it interesting that there has not been more discussion on the board about the crisis.
Being in a "tourist area", the gas prices have definitely been an issue. In addition, we noticed through the summer that more people spent cash on their purchases, not credit which tells me they were either maxed out or simply put the cards away. If they could not pay cash, they did not buy!
My equity line from IndyMac was frozen because of dropping home values. It's ironic that I not only make a mortgage payment to IndyMac, but as a taxpayer, I'm paying to bail them out!!!!!!
Looking for expansion capital for my retail shop, most roads have lead to dead ends. Bank of America, which has been my bank (through mergers, takeovers, etc.) for almost 30 years, is not lending to anyone and have been advised to steer most business customers to their credit card program for funds. I find it somewhat amusing that Bank of America sponsors this business web site that is filled with desperate present or future enterpreneurs looking for funds for which Bank of America will not even give a look.
Unfortunately, I do not see things improving for a long while. In the mean time, small business, which is the back bone of this country will continue to suffer as more retailers, manufacturers, restaurants, etc. close. I hope I am wrong.
News came out today that the treasury will be buying commercial paper specifically pertaining to small businesses. Hopefully that will help.
Any other stories out there? If its true that no banks are lending, shouldn't it follow that people will start losing their jobs? Salespeople, operations people, etc...