Small Business in America is in Bad Shape

Everyone has heard the news about the big name businesses going under recently. Circuit City, K-B Toys, Linens N Things, Car Dealerships, both Ford and GM are going under, big name financial institutions like Bear Sterns, Citibank and others have all gone under.

Every day you turn on the news you hear about them. But what you do not hear is the news about the small business in America. America was built upon small business and free enterprise.

Bush Sold TARP based on getting money to the banks to start lending again. Obama passed 2 Trillion in additional Deficit spending also in the name of getting it to the banks so that small businesses can start borrowing again.

But the reality is that Small business loans are down 30% and that is after the two different Stimulus packages have been signed.

The reality is that everyone holds blame in this, it is not just a Republican or Democrat or Walmart caused problem.

Banks loaned money to people to buy homes they could not afford. Those people were buying $800,000 homes with no paper loans based all on the idea that in a couple of years when their ARM came due, they would simply sell the home.

Congress pressured the banks to keep up the lending aided by a bill signed into law by President Clinton in 1999 that allowed the banks to ease up their lending practices all in the goal of getting most Americans in homes.

But the reality is too many people that should not being owning homes got homes and they started walking away from those homes. Causing the banks money to dry up, when it dried up, they stopped loaning money to other businesses.

When those businesses no longer could get loans they stopped ordering products and began laying off employees. Larger businesses had bigger amounts of reserves so they were able to weather this a bit better.

But smaller businesses are relying on nothing more than will power and stamina right now.

What disgusts me is that the politicians are still playing the games. Obama says he is engaging in deficit spending because he inherited this debt. But the reality is that you cannot spend your way out of debt.

Again everyone is at fault in one way shape or form. Yes America will pull out of this latest recession but at what cost? More small businesses will be closing their doors, to date with prayer and support from friends and other sources we have kept going. But it will be a sad day for America if Small business dies. Thanks for letting me vent on this. As always I hope you will keep frequenting our Online store, http://www.hh-collectibles.com/ Please also keep clicking on and supporting our Sponsors. Thanks.