Question by : As Credit Markets & Conditions Continue To Tighten, what Does This Means For Consumer Spending?
With rising unemployment, deteriorating consumer spending and economic conditions, getting a business, car, personal, etc regardless how small or large is quite of challenge. It’s quite interesting because everybody keeps talking optimistic about market recover, but unless credit conditions really shape up, it’s going to be a long road.

The only reason I am so angry is because I want to start my own business starting out medium range because I have a good business degree and work experience, but they keep telling me, the interest and terms are going to be sharp, you are not going to make much, its going to take a while to approve, and this that or another.

I am getting rather tired and even advanced markets like San Francisco bay area or New York City is having lot of trouble. This is a major concern because if entrepreneurs, college graduates, or experienced to get optimistic, they are going to go elsewhere, or not pursue advanced degrees as they will realize the potential is not as great or as permanent as they thought.

Thus, I have no reason to believe consumers spending will ever return to peak levels, not will business investment, start ups, or opportunities to advanced, which means many firms will lose top talents individuals, and go down altogether. Government bailouts will not encourage top talent, only pay and compensation will which is what they oppose.

Best answer:

Answer by b-rad
I think this is a great question. You nailed it on the head with how most employees in the financial industry are thinking. I work in a bank as a lender and we’re all saying the same thing, in order for this market to turn around the banks HAVE to let loose a little on their conservative thinking. They’re thinking too much “in the box” and the box is small and if you don’t fit that formula (which majority don’t these days) then no one’s going to be approved. Did you know that over 80% of employment out there is started with small business owners or entrepreneurs like yourself?

This means that the government is taking away from creative thinking and not allowing great innovators to stream line more employment thus pumping more money into the economy. You are dead on with what you said. If the credit market doesn’t turn around this economy won’t, you have to allow business owners to borrow money because it’s impossible for business’s to start up without it. The cost involved far exceeds the revenue generated your first 5 years in business. Without a loan to fall back on you’re riding a sinking ship. You have to stay aflot somehow those first few years in order to succeed.

The government has taken measures to address this by pumping money into the financial sector potentially to allow banks for more wiggle room to lend HOWEVER the banks are receiving the money but they are still sitting in the corner sucking their thumb hoping the big monster just goes away. They’re not doing anything with it I have yet to see underwriting policies loosen up in fact it’s got even more stringent and nearly impossible for anybody to be approved for business loans.

More and more college graduates are coming into the work environment in debt up to their eye balls with student loans just to find out that the job they had in mind isn’t covering the bills as they had expected it too. You think they’ll want to go back to school to advance any further??? doubt it.

What do you think? Answer below!

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