Skip to comments.CIT collapse could ripple through retail industry (Obama's continuing assault on small business!)
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 ...
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...
the crisis mill keeps grinding
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.
What else could we have expected from a graduate of the Karl Marx School of Business and Economics???
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.
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.
>>CIT collapse could ripple through retail industry (Obama’s continuing assault on small business!)<<
What’s the alternative - another bailout?
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.
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.
Hating business is a family matter. Remember Michelle's comments about spurning the private sector for the higher calling of "public service".
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.
Every single person should read this IN FULL:
Then you know what we’re up against.
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.
as the get whitey train keeps winding ... down the road.
Becoming increasingly clear what the Kenyan’s plan is
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.
CIT just wanted connected enough for a federal bailout. No big labor unions or Goldman Sachs cronies involved.
Another writeup on CIT:
Thanks for the alert. KD is one smart dude. LOL
Right on. By doing nothing (no bailout) they actually got one right.
People have wised up buy ONLY what you need.
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
This economy is still headed south (down for the econ-impaired reader).
Bump for later.
Why does south always have to be down!?
I like the south.
I'm surprised anyone was willing, after what happened to GM and Chrysler's bond holders.
Thanks for the ping.