Xtreme XC
Hoosier Daddy!!!! Angola, IN
Joined: 05/14/2001
View Profile
 Offline
|
Bush tried to stop the nonsense in '03, Dem's blocked it, McCain voted to do the same in '05, Dem's blocked it. Not saying some Repubs aren't guilty, but Polesi saying it's the Bush Admin's fault is plain BS... she's a manipulative lying b!tch.
http://www.cheersandgears.com/forums/index.php?showtopic=26267
|
RIGGS1
WISCONSIN
Joined: 03/19/2003
View Profile
|
The guys on the Raleigh's are fags, bet he shoots around sportin all the Team Raleigh garb & hat and walks into the bar like he's all that.
|
Mainecat
Nice Kitty OUCH!!!
Joined: 05/15/2001
View Profile
Offline
|
Xtreme XC wrote:Bush tried to stop the nonsense in '03, Dem's blocked it, McCain voted to do the same in '05, Dem's blocked it. Not saying some Repubs aren't guilty, but Polesi saying it's the Bush Admin's fault is plain BS... she's a manipulative lying b!tch.
Buddy in 03 and 05 the repubs controlled the house, senate and the white house....so in reality the repubs blocked it.
|
4th ski-doo
Chicago
Joined: 11/22/2001
View Profile
Offline
|
Mainecat wrote:Rick27 wrote:Mainecat wrote:Rick27 wrote:Mainecat wrote:Long time cat man wrote:The banks failed! Just like that eh?? No accountability, no one was in charge, no regulators were discouraged or pressured not to do their jobs? They just failed on their own eh???  BTW....Ken you have a business, MC has one, I know a few others who have one. Did any of you people have trouble getting money to pay your employees, or for any other operations?? jus askin. The big threat was no money and the banks drying up......never heard of anyone I know of having that problem. Sounded like BS to me!
My vendors cut their terms in half in the last 2 weeks. Short term credit was just about gone. When banks aren't lending each other money it's bad.
The bank isn't your partner. Run the business with the money it generates and if it isn't bringing in enough, close and take a number at the soup line.
Really you don't use any short term credit? You pay all your bills with cash? I find that hard to believe or you just do not understand manufacturing.
No I don't use any kind of credit. If I can't afford it I don't buy it. That means it will always be MY business not some silent partner that doesn't contribute to the day to day operation. I use my bank as a holding and dispersal place and nothing more. There is no credit crunch for people or businesses that live within their means, MC. The money is still being lent to people that have the collateral to put against the loan. The no money down or unsecured loans are the ones that have dryed up and if they had done this all along there wouldn't be a problem today.
You don't understand it.
Nope its the short term money thats dried up that funds 70% of America's businesses. You know the sled dealer that has inventory, the parts manufacturer that has raw materials etc.
Yes MC is correct on this. This isn't about the idiot Americans that average $12k in credit card debt, it's the business that pay them
Here is the problem. We can use Catepiller, but many many small business use this model. It is business 101.
Payroll, line of credit. Business 101-Use the banks money not yours.
Line of credit against the buildings, stock, property, trucks, tools, etc. They use this, transfer funds on Thurs. morning and payroll out Thurs. afternoon.
Now, banks lock up lending, reduce credit, no transfer of funds, no payroll. Simple.
Now let's say MC is a land development company. He takes out a line of credit, buys a farm, puts in streets, sewers, curbs, fire hydrants, electric, gas, side walks, site work, pert tests, etc.
Now he is out of credit, use the bank's money so he doesn't loose his if it goes bad. He is broke and needs capitol to build homes so...
He sells 10 lots to srx, who takes a line of credit against something else because the land has to be owned to get a construction loan so...
He sells 3 lots to Lainie construction. He doesn't pay down loan, he used the capitol to dig hole, water, concrete, etc. ****He has a loan on 10 lots, only holds 7*****
Now, construction loans have limits to payouts so 4th doo electric, revwreck sheet metal, M1M carpentry has to wait for our money.
That means we have loans out for payroll, material, trucks, tools, etc. BECAUSE we would never use our money in case srx bellies up and don't pay us.
Now, there was no way we could fill the homes being built. Banks are in the banking business, not the repo house business.
Banks forclose, even if they sell the house it's a break even deal and the banks can't stay open.
SO what do they do, lock down credit.
Sorry for the long read, hope this helps. We just did a contract job for a factory that was $80,000. Actually 4 mos ago. No payment, finally they offered up 80% or 12mos payments.
We are 7% on our money and the job was bid tight to keep the guys working, what are we to do?
80% = Loss
12mos=7%x12mos loss IF they pay.
|
Xtreme XC
Hoosier Daddy!!!! Angola, IN
Joined: 05/14/2001
View Profile
Offline
|
majority of the dems voted against it. But like I said, it's both sides. However you can't try and blame McCain for it or call him "the same".
|
RIGGS1
WISCONSIN
Joined: 03/19/2003
View Profile
|
I got 1 word for ya;
Rouge Waves
watching a History Channel program right now about rouge waves... freaky stuff.
|
Xtreme XC
Hoosier Daddy!!!! Angola, IN
Joined: 05/14/2001
View Profile
Offline
|
4th ski-doo wrote:Mainecat wrote:Rick27 wrote:Mainecat wrote:Rick27 wrote:Mainecat wrote:Long time cat man wrote:The banks failed! Just like that eh?? No accountability, no one was in charge, no regulators were discouraged or pressured not to do their jobs? They just failed on their own eh??? BTW....Ken you have a business, MC has one, I know a few others who have one. Did any of you people have trouble getting money to pay your employees, or for any other operations?? jus askin. The big threat was no money and the banks drying up......never heard of anyone I know of having that problem. Sounded like BS to me!
My vendors cut their terms in half in the last 2 weeks. Short term credit was just about gone. When banks aren't lending each other money it's bad.
The bank isn't your partner. Run the business with the money it generates and if it isn't bringing in enough, close and take a number at the soup line.
Really you don't use any short term credit? You pay all your bills with cash? I find that hard to believe or you just do not understand manufacturing.
No I don't use any kind of credit. If I can't afford it I don't buy it. That means it will always be MY business not some silent partner that doesn't contribute to the day to day operation. I use my bank as a holding and dispersal place and nothing more. There is no credit crunch for people or businesses that live within their means, MC. The money is still being lent to people that have the collateral to put against the loan. The no money down or unsecured loans are the ones that have dryed up and if they had done this all along there wouldn't be a problem today.
You don't understand it.
Nope its the short term money thats dried up that funds 70% of America's businesses. You know the sled dealer that has inventory, the parts manufacturer that has raw materials etc.
Yes MC is correct on this. This isn't about the idiot Americans that average $12k in credit card debt, it's the business that pay them
Here is the problem. We can use Catepiller, but many many small business use this model. It is business 101.
Payroll, line of credit. Business 101-Use the banks money not yours.
Line of credit against the buildings, stock, property, trucks, tools, etc. They use this, transfer funds on Thurs. morning and payroll out Thurs. afternoon.
Now, banks lock up lending, reduce credit, no transfer of funds, no payroll. Simple.
Now let's say MC is a land development company. He takes out a line of credit, buys a farm, puts in streets, sewers, curbs, fire hydrants, electric, gas, side walks, site work, pert tests, etc.
Now he is out of credit, use the bank's money so he doesn't loose his if it goes bad. He is broke and needs capitol to build homes so...
He sells 10 lots to srx, who takes a line of credit against something else because the land has to be owned to get a construction loan so...
He sells 3 lots to Lainie construction. He doesn't pay down loan, he used the capitol to dig hole, water, concrete, etc. ****He has a loan on 10 lots, only holds 7*****
Now, construction loans have limits to payouts so 4th doo electric, revwreck sheet metal, M1M carpentry has to wait for our money.
That means we have loans out for payroll, material, trucks, tools, etc. BECAUSE we would never use our money in case srx bellies up and don't pay us.
Now, there was no way we could fill the homes being built. Banks are in the banking business, not the repo house business.
Banks forclose, even if they sell the house it's a break even deal and the banks can't stay open.
SO what do they do, lock down credit.
Sorry for the long read, hope this helps. We just did a contract job for a factory that was $80,000. Actually 4 mos ago. No payment, finally they offered up 80% or 12mos payments.
We are 7% on our money and the job was bid tight to keep the guys working, what are we to do?
80% = Loss
12mos=7%x12mos loss IF they pay.
This might be true with the large banks currently, but local banks are not, at least yet, affected. So you can still get these loans (I know all about it... wifey is the risk managment officer at one)
|
4th ski-doo
Chicago
Joined: 11/22/2001
View Profile
Offline
|
It's the trickle down. It's coming.
|
Icehole
A arm this
Joined: 12/09/2002
View Profile
|
credit won't be literally "locked down".....it'll be adjusted to what the creditee shows hisself bein able to afford, yes, to many it will be a much smaller line of credit ......what a revelutionary concept eh?
|
Rick27
michigan
Joined: 01/30/2006
View Profile
|
Icehole wrote:credit won't be literally "locked down".....it'll be adjusted to what the creditee shows hisself bein able to afford, yes, to many it will be a much smaller line of credit ......what a revelutionary concept eh?
My point exactly!!
|
|
