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CIT collapse could ripple through retail industry (Obama's continuing assault on small business!)
The Fayetteville Observer ^ | 7/17/09 | ANNE D'INNOCENZIO

Posted on 07/20/2009 12:46:35 AM PDT by Daisyjane69

NEW YORK (AP) - The possible collapse of a key lender is sending panic through the retail industry, threatening to hang up deliveries of back-to-school clothing and other merchandise and throw holiday ordering into disarray. A bankruptcy filing by CIT Group would hurl more trouble at an industry already hammered by the worst spending slump in decades. Industry experts say that any short-term disruption in financing by CIT could ripple throughout the industry. New York-based CIT fills a crucial role in the retail industry by helping companies that make items get paid faster by the stores that sell them. It does this by providing short-term financing, mostly to small- to medium-sized businesses that can't afford to wait the typical 60 to 90 days it takes to get paid by retailers.

(Excerpt) Read more at fayobserver.com ...


TOPICS: Business/Economy; Germany; Government; News/Current Events
KEYWORDS: bailouts; economy; smallbusiness
Breaking news:

CNBC, just a few minutes ago (as European markets open) is reporting that CIT reached a deal for an emergency rescue from a German firm.

Waiting for more info...

1 posted on 07/20/2009 12:46:35 AM PDT by Daisyjane69
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To: Daisyjane69

the crisis mill keeps grinding


2 posted on 07/20/2009 12:54:50 AM PDT by KTM rider ( revolution is the only thing that can save us now)
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To: KTM rider

The part that kills me is it looks like a German firm pulled Zero’s bacon out of the fire. Although I’m happy the mom and pop retailers will have some relief (if what I heard is true). These were the same kinds of small businesses that he is expecting to shell out taxes to pay for his socialized medicine, and the rest of his crapola.

We should know in a few minutes. I’m watching CNBC to make sure I heard that correctly a little while ago.


3 posted on 07/20/2009 12:57:57 AM PDT by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: KTM rider

What else could we have expected from a graduate of the Karl Marx School of Business and Economics???


4 posted on 07/20/2009 12:59:35 AM PDT by gov_bean_ counter (Barak Obama: Pontificator in Chief and Poster Child for the Peter Principle)
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To: wafflehouse; Leisler; PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; ...
*Ping!*
5 posted on 07/20/2009 1:02:42 AM PDT by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: Daisyjane69
The part that kills me is it looks like a German firm pulled Zero’s bacon out of the fire.

No, it looks like they screwed over Obama's plans. CIT was a competitor to GE, so the administration likely wanted to see them die.

6 posted on 07/20/2009 1:12:35 AM PDT by thecabal (Hey Obama, when you gonna start sharin' the sacrifice?)
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To: thecabal

I did not know that. Thanks for the tip!

In any event, yes CIT has reached some sort of deal. They are characterizing it as a 3 bil deal with bondholders, including Pimco. Last time they mentioned Germany, so perhaps some of the bondholders are German. We’ll have to wait and see.


7 posted on 07/20/2009 1:18:36 AM PDT by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: Daisyjane69

>>CIT collapse could ripple through retail industry (Obama’s continuing assault on small business!)<<

What’s the alternative - another bailout?


8 posted on 07/20/2009 1:24:22 AM PDT by gondramB
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To: gov_bean_ counter

A week ago I thought CIT was part of CitiBank or Citigroup. I quickly learned it is the backbone of business.

so then I ask, (myself) ... is/was CIT being used as a .. do as I say or look what I can do ... threat by Obama/el al or el al/Obama.

And if we are rescued by Germany we will still live under a threat of failure, just by another country.


9 posted on 07/20/2009 1:29:29 AM PDT by malia
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To: gondramB

Actually, they asked for a small bailout. This would have been one of the few to help small businesses. The big ones...AIG, GM, Chrysler, the big banks. Those bailouts were okay.

This one, Obama refused.


10 posted on 07/20/2009 1:30:17 AM PDT by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: thecabal
Obama is the most anti business president ever and would just as well deep six GE but for the fact that GE owns that useful idiot NBC.

Hating business is a family matter. Remember Michelle's comments about spurning the private sector for the higher calling of "public service".

11 posted on 07/20/2009 1:58:21 AM PDT by monocle
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To: monocle

Correction: Obama (and the rest of the oligarchy) is not anti-business. They are corporatists, and want to see their chosen business friends succeed at the expense of their competitors, using any means they can get away with. Unfortunately, it looks like Wal-mart is trying to jump on this bandwagon as of recently.


12 posted on 07/20/2009 2:21:23 AM PDT by thecabal (Hey Obama, when you gonna start sharin' the sacrifice?)
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To: thecabal

Every single person should read this IN FULL:

http://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine/print

Then you know what we’re up against.


13 posted on 07/20/2009 2:41:26 AM PDT by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: thecabal
The Capitalists will sell us the rope with which we will hang them. Vladimir Ilyich Lenin

Obama is using his useful fools to achieve his socialistic goals. Obama views facism as a necessary intermediate step to his socialist nirvana. Once the Walmarts and the GEs have served their roles as fools Obama will buy the rope from them and have a public execution for selling the rope at inflated prices. The show trial will be a Congressional hearing by gaggle of tin gods.

14 posted on 07/20/2009 2:48:46 AM PDT by monocle
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To: KTM rider

as the get whitey train keeps winding ... down the road.

Becoming increasingly clear what the Kenyan’s plan is


15 posted on 07/20/2009 3:29:56 AM PDT by Tarpon
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To: Daisyjane69

If CIT’s commercial factoring business is profitable, one would expect other lenders to try to get that business if CIT disappeared. In fact, I would not be surprised if their better customers are being approached by several other lenders right now.


16 posted on 07/20/2009 3:41:53 AM PDT by proxy_user
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To: Daisyjane69

CIT just wanted connected enough for a federal bailout. No big labor unions or Goldman Sachs cronies involved.


17 posted on 07/20/2009 3:44:39 AM PDT by Wolfie
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To: Daisyjane69

Another writeup on CIT:

http://market-ticker.org/archives/1234-Hope-Is-Not-A-Strategy-CIT.html


18 posted on 07/20/2009 4:43:18 AM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: DuncanWaring

Thanks for the alert. KD is one smart dude. LOL


19 posted on 07/20/2009 4:52:44 AM PDT by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: gondramB

Right on. By doing nothing (no bailout) they actually got one right.


20 posted on 07/20/2009 4:56:35 AM PDT by Diverdogz
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To: KTM rider

People have wised up buy ONLY what you need.


21 posted on 07/20/2009 5:05:20 AM PDT by Vaduz
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To: Daisyjane69

Interesting reading...
just exercised my copy/paste function to preserve the content on my hard drive.

Again, Matt Taibbi has an interesting story to tell.

Thanks for the post


22 posted on 07/20/2009 5:21:03 AM PDT by pointsal
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To: Vaduz

This economy is still headed south (down for the econ-impaired reader).


23 posted on 07/20/2009 5:23:00 AM PDT by pointsal
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To: Daisyjane69

Bump for later.


24 posted on 07/20/2009 5:44:46 AM PDT by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: pointsal

Why does south always have to be down!?

I like the south.


25 posted on 07/20/2009 12:53:48 PM PDT by 1010RD (First Do No Harm)
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To: Daisyjane69
They are characterizing it as a 3 bil deal with bondholders, including Pimco.

I'm surprised anyone was willing, after what happened to GM and Chrysler's bond holders.

26 posted on 07/20/2009 2:22:39 PM PDT by TwelveOfTwenty (Hey Nancy, how many jobs have been lost since you and the Democrats took Congress?)
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To: rabscuttle385

Thanks for the ping.


27 posted on 07/20/2009 2:24:59 PM PDT by GOPJ (Conservatives: the "niche market," consisting of about half the population" - David Warren)
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To: GOPJ

You’re welcome.


28 posted on 07/20/2009 2:38:15 PM PDT by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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