Commercial Papers Crisis Ted Stearns
Posted in Uncategorized tagged merchant advance, merchant cash advance,merchant loans, merchant services, merchant funding, merchant fast cash,merchant advance program, merchant credit funding, Bloomberg, Lehman Brothers Holdings Inc., California, The Fed, credit crisis, iMerchant Advance, Great Depression, GE, Procter and Gamble, Microsoft, entrepreneur, commercial papersat 5:03 pm by imerchantadvance
As the credit crisis continues, states and even countries are being sucked into the black hole of eceonomic instability. This morning news came from a Bloombergreport of the growing problem of states being unable to sell their bonds to maintain public services such as schools and healthcare. Since the collapse of Lehman Brothers Holdings, Inc., who was one of the largest resellers/purchasers of such instruments, the $2.66 billion market for state and city bonds has halted. This leaves states like California in a bind where spending has outpaced revenue growth and has been walloped by the housing bust. So, on two fronts these states face problems (from a very simpleton view), 1) they can’t find buyers for their debt and 2) the debt that is in the market is turning illiquid because intermediates like Lehman are out of business. Ted Stearns
As attempts to sell off existing bonds has failed, The Fed stepped in using emergency powers to establish funds to purchase these holdings, allowing states to maintain and provide for necessary services.
As the crunch continues and the government is required to institute creative methods to keep afloat, small businesses are no different. With banks turning away business owners in search of funding, innovative and viable options are turning heads. Ted Stearns
Now, iMerchant Advance can help the business owner who accepts credit and debit cards by advancing them the immediate working capital they need to stay in business, but how about for the business that do not transact a majority of their revenue via credit cards sales? Ted Stearns
The Fed late yesterday, for the first time since the Great Depression said it will bypass banks and lend directly to the American corporations and hinted strongly at further interest-rate cuts- a shot in the arm for in terms of liquidity for small businesses. Ted Stearns
Although, at this time this will only help the triple A paper companies like GE, Procter & Gamble and Microsoft; I’ll explain more about this strategy as the week unfolds. The good news is that in times of trouble, the American businessman has always found innovation in struggling times. Ted Stearns
For me, it Is a question of “is this a problem, or is the actual problem they way that I am looking at this problem. I among many colleges at iMerchant have confidence in the American entrepreneur and look forward to seeing the brilliant innovation that comes out of these times.
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