If we are to believe the news reports on what is happening in the banking and financial markets, we may have to keep our cars a bit longer and pay a very higher interest rate if we need to finance it. This applies to even individuals that have a very high credit score. And if we lease our cars, we will be paying more up front and higher payments.
If you have not received a notice from your credit card company that your interest rate is going up and a annual fee is going to charged for individuals that pay off the balance each month, watch the mail, it is coming.
If you are in a small or medium size business, expect to be turned down for those short-term loans you use to get to cover supplies and salaries for projects. And if you get the loan it is going to cost you more, even if you always paid back the loans on time.
If you are in the retail sales market and depend upon Christmas sales, this year may be one of your worst.
Many banks are even beginning to have problems getting their overnight loans, and when they do get the loans--they are paying more for money. Even banks are concern about the ability of other banks to pay back loans. I expect to see fewer banks in the future. It may be a good time to make sure your bank accounts are not above the amount insured by FDIC.
We need not to panic, just look at the facts and plan on how to endure the change. We have done it before, so we know can do it again.
There are other concerns about tight credit. Lay offs may occur if employers cannot get loans to replace worn out equipment.
I contend, one of the solutions to keep our economy moving is to expand the SBA loan program, to make it easier for small businesses to get short-term loans.
One thing is obvious it is not the time for the government to increase business taxes.
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