Small Business Boomers

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A co-worker (who also is a baby boomer) came into my office yesterday and asked, “So what does all this financial stuff mean?  Should I be worried?”  I understand her concern.  It is difficult to read the financial news these days.  Top MSNBC news: “Wall Street’s a Mess.”  Yikes!
Fannie Mae and Freddie Mac have been rescued from disaster at a cost to the U.S. taxpayers of many billions of dollars.  Lehman Brothers is declaring bankruptcy. (This is a 158 year old company, folks.) Merrill-Lynch is accepting a buyout from Bank of America.  Thee only good …read more

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Credit is tighter now than it has been in many years. According to Barrons, credit on home loans, business loans, and credit cards is getting more difficult to get. Too many people were getting cheap, easy credit and then wondering why they couldn’t pay their bills. Americans have become addicted to consumer credit.
When banks began offering 100% mortgages, I predicted that this tactic would cause problems if someone tried to sell a home at less than its loan value. Guess waare getting too many credit cards. We baby boomers remember when there were …read more

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Fannie Mae, the nickname of the Federal National Mortgage Association,and Freddie Mac,  the Federal Home Loan Mortgage Association, are in trouble because of the subprime mortgage crisis.  Last week the Federal Reserve announced that it would loan these entities money, if necessary.  The press release explained their action:
This authorization is intended to supplement the Treasury’s existing lending authority and to help ensure the ability of Fannie Mae and Freddie Mac to promote the availability of home mortgage credit during a period of stress in financial markets.
The federal government is considering bailing Fannie Mae and Freddie Mac out (with taxpayer money, of …read more

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