I am – and others – are getting more and more communications from small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, about how worried they are about the credit crunch.
At the same time unemployment figures in the US and elsewhere show no increase in the unemployment, so what kind of recession is this? What started it and how is it affecting small business?
In my personal opinion, the story goes something like this:
Enter the “greedy banker”, who recklessly hands out money to just about anyone how wants any and to some who may not even wanted a credit. Banks are obliged by law to make checks on their creditors. It is all very well to tell creditors they will lose their house if they can not pay the monthly installments on their credit. It is true at the same time that bankers should know they will lose money if they recklessly hand out money.
Then the “greedy banker” gets into trouble, as he/she should have known would happen. Our governments using our (tax-) money recklessly to bail these “greedy bankers” and there shareholders out. So they can go back to “work”, pay themselves the wages and bonuses we all can only dream about, and start repossessing the houses of the very people who’s tax-money was used to bail them out, for mistakes the bankers made.
If I had a mortgage with one of these banks and they wanted to reposes my house, I would fight them in court for damages for miss-selling loans to me and endangering my financial future and that of my family. As mentioned before, they ought to be liable for this mess. I do not see any prosecutions going down for reckless and maybe even fraudulent credit practices, where are all the prosecutors? Did none of the greedy bankers know what they were doing? There certainly is public interest, thousands and thousands of families who have to loss it all, not to speak of all us tax-payers, who want hospitals, school, police to name but a few and not to bail out “greedy bankers”?
Unbelievable damage has been done to our economy by these “greedy bankers”, and now small business is going to get it. Judging from the ever growing number of emails I receive, many banks asking for business loans back, not extending facilities, not providing new finance for small business to grow and with this forcing many small businesses out of business. They are using our own money against us to help themselves.
In short, it is my believe that this whole recession has been created by “greedy bankers”, to fill there own pockets. Which small business has ever received loans from government to stay in business, well we all do not have meetings with the Prime Minister or President, do we?
It is time to develop mechanisms to hold our politicians accountable for what they do with our money, it is also time to hold our public servants/prosecutors accountable for their failure to investigate these – in my personal opinion – at best reckless “greedy bankers”! After Arthur Anderson, Enron, WorldCom and others, why not clean out the banking system and make them accountable for their mistakes and greed – no more dividends for any shareholders until all this public money has been payed back with interest and charges.
To all of you who have written to me about this, I’m really sorry, but I have no answers for you other than not to get involved with banks if you can and bootstrap the hell out of your business.
As you can tell it’s been one of these weekends, I hope you have a better one. — ST.