Small Business Credit Card Cutbacks

nytimes.com:

Louis Licata has shelved plans to hire three more employees for his Cleveland law firm. Jeannie Macone, of Florida, is cutting back on inventory for her trinket and home décor business. In Ohio, Patrick Allen has slashed employee travel and begun paying cash for work dinners with clients of the marketing firm that he started from scratch.

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Read the whole story: nytimes.com

Comments

[lvdragonlady]

Wake up America, it is NOT Obama that is the one undermining small business. It is the banks and credit card companies with the addition fees, credit limit cuts and limited lending.
The banks are the problem NOT the solution.

[nomorefed]

Your house is worth $125,000 but you paid $250,000 don"t worry with "Mark-To-Market" Neutered you can say whatever you want to about your home value and no one can refute you!
Now when you go in for a loan, simply declare the house is worth $300,000 and along with your clean "ON-THE-BOOKS Balance Sheet" with no visible other debts means you get money from the FED at 1% interest or maybe less!
Why can"t this world be true for ALL AMERICANS like it is for Wall Street?
We do not own Congress and they DO using ill-gotten FUNDS!
Are the Wall Street Banks really healthy? With "OFF-THE-BOOKS" accounting and "MARK-TO-MARKET" Neutered who knows what the truth is!

good articles: href=".http://kl.am/tsc> recommended website

[iridium53]

The Obama administration has abandoned small business.
They've supported the huge banksters compensation packages.
Obama has, laughingly, followed the Laffer trickle-down theory.
All the while the banksters have been sticking it to small business.

We do IT consulting to large companies. Including some of these very large banks.
We use credit cards to finance our travel. Their credit cards. Which they cut.
They have stretched out their payments for travel and payments to twice the contractual time.
Because they can.

And, Obama takes our tax money and gives it to them. So they can put me out of business.

I had to lay off a bunch of mostly young, highly-educated (mostly MBAs with CS undergraduate degrees and Computer Science Masters degrees - from schools like USC, UCLA, Berkeley, UCSD, Clairemont Graduate, etc.). Very skilled individuals.

And, believe me, they were all told precisely why. Obama prefers to pay Ken Lewis' salary.

[themodernleader]

My bank's vice president lied to get me to buy into their credit card service. Now I am locked in for three years and the costs, many hidden and annual, are outrageous. Business integrity does not exist.

[Lorianne]

Unfortunately, a lot of small businesses are not going to make it because they depend on consumer discretionary spending (which there will be less and less of) and consumer debt spending (which people will no longer be able to obtain).

In the really big picture, this is a good thing. We let too much of our economy depend on unsustainable levels of consumption, most of it based unsustainable levels of debt.

In the short run, it's gonna be bad.

[davidwayneosedach]

Welcome to recession times.

[SangZe]

You mean depression, don't you? Thank you, Obama.

[sonoffestus]

Now, tell me how in his 5 months in office did Obama create a depression?
So Bush and his team did great job? When I read a post such as yours I am convinced the US has little chance of moving forward.

[ImmanuelGoldstein]

Too bad, but most of these businesses are unviable in a world in which unsustainable credit expansion is the thing of the past.
A trinket and home decor business? Yeah, the world certainly needs lots of those right now!

[drymartini1]

How many Cindy's Nail Salon does a city need !! people treat small business as some silver bullet to all troubles !!

[nomorefed]

1st 100 days - There are 2.9 million more people unemployed in May than there were unemployed in January. The unemployment rate went from 7.6% to 9.4%.
Since May 2008, we have lost 5.5 million jobs. The biggest losers were:
Manufacturing 1.5 million lost
Finance & Prof Serv 1.5 million lost
Construction 1.1 million lost
Retail & Leisure 1.3 million lost

good articles href=".http://www.bit.ly/12NCJR>recommended reading

[TJCole]

Look 2/3rds of our economy is consumer spending, but the Credit Card Companies and their insane Usurious Rates, predatory bad practices are constricting spending, so as we bail them out they are stabbing us in the back..!

It's as simple as that...

[ImmanuelGoldstein]

Unfortunately if consumer spending is based on debt (as much of the growth over the last 25 years has been based on) you reach a point where it becomes unsustainable.
And the credit card companies are simply going back to hsitorical standards for offering credit, you know actually wondering if there is any chance they can actually pay them back, that kind of thing....

[mjeffn]

So far so good. I haven't used a credit card in three months. I use my Debit card for airline tickets, car rentals, etc. but otherwise write a check or pay cash. I thought it would be hard but it hasn't been at all.