Either the credit markets will seize up in the next few days, or they won't.
Businesses either will get the short-term operating loans they need in the commercial paper market, or they won't. Either they'll get the money somewhere else (old-fashioned banks are back in style), or they won't make payroll and will have to start laying off people. http://www.stltoday.com/stltoday/news/stories.nsf/editorialcommentary/story/322AD4416780E956862574D30081D731?OpenDocument
I own a small graphic design company that employs thirty people. We depend on credit for everything from payroll to buying supplies.
I have currently frozen salaries and we are trying to find a way to extend our office supplies. http://news.bbc.co.uk/1/hi/business/7643244.stm
Kansas City cabinet maker Anthony Gallo is in a similar bind. Eighteen months ago Gallo had no debt. Now he's being forced to borrow just to make payroll – just as his chief lender has cut his credit line from $400,000 to $175,000.
"My line of credit has been cut to nothing," said Gallo. "We're all hurting... and wondering what is going to happen." http://www.signonsandiego.com/news/nation/20080930-1130-financial-mainstreet.html
A shattering moment in America's fall from power
The global financial crisis will see the US falter in the same way the Soviet Union did when the Berlin Wall came down. The era of American dominance is over
http://www.guardian.co.uk/commentisfree/2008/sep/28/usforeignpolicy.useconomicgrowth/print
And this is where we stand today. The great ship (United States) is sinking. Should we let the band (Hank Paulson) dictate those who get onto the lifeboats first? If we do, we will all face the fate of Jack as he slowly freezes to death in the icy Atlantic. http://www.thecuttingedgenews.com/index.php?article=795&pageid=44&pagename=Slices
We cannot risk another week or another month where American businesses are afraid to extend credit and lend money," Obama said. "That has an impact on housing here in Nevada. That has an impact on a small business owner who has got to make payroll, and if he can't make payroll on Friday, he may lay you off on Monday. If he lays you off on Monday, then that means you may not be able to make your payments to somebody that you just bought something from. It ripples throughout the economy."
http://dyn.politico.com/printstory.cfm?uuid=B4F837FA-18FE-70B2-A818876217230B44
Markets around the world are under stress, and that reduces the availability of credit that businesses across America depend on to meet payroll and to ... http://www.baltimoresun.com/news/nation/bal-te.bailout30sep30,0,1808693.story
If the credit markets should freeze up--which many say is happening and will continue without massive intervention--everyone that borrows money will face a cash crunch. That means companies that take advantage of short-term loans to get by won't be able to buy raw materials or make payroll. Even businesses that don't need short-term capital may defer purchases to preserve capital. http://news.cnet.com/8301-1001_3-10053693-92.html
Kansas City cabinet maker Anthony Gallo is in a similar bind. Eighteen months ago Gallo had no debt. Now he's being forced to borrow just to make payroll – just as his chief lender has cut his credit line from $400,000 to $175,000.
"My line of credit has been cut to nothing," said Gallo. "We're all hurting... and wondering what is going to happen." http://www.signonsandiego.com/news/nation/20080930-1130-financial-mainstreet.html
It's not a question of the high cost of credit, there's nothing available out there," said Levin, noting that he hears of sales agencies going out of business almost every week.
"The party's over and people don't want to admit it ... I don't want to admit it, but you had to see it coming." FAL
