Originally posted by: GTKeeper
Originally posted by: SP33Demon
Originally posted by: LegendKiller
Originally posted by: SP33Demon
Originally posted by: OptimisTech
Originally posted by: CADsortaGUY
Originally posted by: OptimisTech
Oh, and for those of you on monthly pay cycles, there is a REAL chance you will not get a check tomorrow.
:roll: What scare tactic email did you buy into?
Read a book. 90% of businesses use short-term loans to meet payroll every month. If the credit markets seize (which they almost surely will now.) they won't be getting those loans. If you were lucky enough to have payroll processed already, you'll get paid. If not, be ready. Did you really think you were invulnerable to this and you could ignore it?
Then those businesses can get a loan from Bank of Am, Chase, Citi, Wells, or any other bank that will be fine. What's that you say? Their credit rating sucks? Too bad.
Fool, they won't be lending. NOBODY is lending. Are you too dense to understand that? Their capital base is so depleated that they are only floating along too.
What the hell are you talking about? Since when can't a small business get a loan from any of those companies? Put up or shut up.
I think this is about the dumbest reply I have heard in quite some time.......
Let me explain in idiot terms how this works. Let's look at Wachovia for example....
They offer tons of small business loans right? right (making it easier for you here)
They also BORROW money from other financial instituations on a short term basis.... (trust me here)
The amount of money they are dolling out on a DAILY basis to PAY for these short term loans is A LOT OF MONEY
Now, this leaves them with little capital to lend to ANYONE because they themselves are so leveraged that most of their capital is spent administering their own borrowings.
Now, since the amount of new money coming into wachovia (direct deposits, loan / mortgage products etc) is not a whole lot, in fact its not even coming in fast enough to cover Wachovia's own borrowing obligations. What does that do to any spare money that they do get?
Thats RIGHT! They keep it to keep themselves AFLOAT. And how much money is left to lend to all these 'small businesses' of yours? NONE
Get it now?