So my companies 401k manager came and spoke during our recent national sales meeting. he kept harping on the difiicult times that lay ahead and how the frozen credit markets and loss of confidence has busted up the economy. He also said it was a great time to buy! (sidebar: i recently dropped my deferral into the plan to 1%)
anyhow, i got a chance to speak with him after the meeting and have been corresponding through e-mail about this topic ('frozen' credit markets). I've included the following links to him (among others):
http://www.reuters.com/article/email...BrandChannel=0
http://www.minneapolisfed.org/research/WP/WP666.pdf
and his reply to the data:
"This is all good information and I will take it under advisement;
however, I have real clients who's line's of credit have been taken off
the table. Client A's $4,000,000 construction project is on permanent
hold. Client B's $10,000,000 credit facility - closed. Client C's
$20,000,000 credit facility, closed. I know for a number of my client's
the rules have changed and they can't get money for expansion and
growth. These are not sub-prime borrowers. Ask business owner's you
know if their banking relationships have changed."
i know this may be true, but i'm thinking there's more to these examples than just 'hey sorry, we're cutting you off now'. Like orders to fill Client A's building have stopped; that Client B and C's credit facilities aren't closing from the lack of available credit, but due to people ceasing to use credit.
Any other things i'm overlooking here? are there any other resources i could draw upon? thanks
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