NEW AMERICAN HERO!
It seems that CIT is leaning more towards bankruptch as we continue to follow this story in the news. This is really scary to all of us. Thirty-two trade groups sent a Dear John Mr. Obama letter pleading to change his decision to extend aid to this crisis. CIT lends to many small businesses around the country. If they file for bankruptcy, then that will mean total chaos which will pour more gas on to the fire.
"As the U.S. and world economies struggle to recover from the most devastating recession in recent memory, we are writing to impress upon you the very severe ramifications that a CIT bankruptcy would have on more than one million small and medium-sized businesses, their partners in the U.S. retail industry and the manufacturers and service providers that supply that sector," the groups' letter said. The groups asked the administration to "reconsider every possible option to address the current stresses confronting CIT and to prevent further tightening of the credit markets." cited: http://blogs.wsj.com/economics/2009/07/18/cits-customers-issue-an-urgent-request/
It is the largest lender to small businesses in America. Currently, it has over $5 billion in outstanding loans with over a one million borrowers at the present time. Some of its borrowers include Dunkin Donuts and Dairy Queen just to name a few. The Government is willing to let it go bankrupt. If that happens, then it will be the fourth largest bankruptcy in the history of America. It provides sixty percent of the loans to the retail industry. If they go bankrupt, then retail stores will continue to shut down stores and lay off more personnel to increase the unemployment rate. Where does it stop? Credit is tight right now. Many small business owners are unable to find capital to expand their businesses.
Keep going
PLEASE GIVE ME A HAND OUT. DO NOT FORGET ME.
We will see what happens next week. What do you think will happen? Bankruptcy?
Make the Call, Set the Plan, Do the Deal$!
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