The Warning Sign: Lending Pendulum Changes Course - How Extreme Will it Get?

Chances are you actually saw this article today given it was on the front page of the New York Times. We just hope you took a moment and didn't dismiss it as, "If it is Monday, there must be another bank related headline".

Here's why you care: The Times perfectly lays out just why the tightening of credit (aka the ability for a business to get a loan) is creating financial constipation. The squeeze on the small business owner means he can't get the loan to do his next thing. That next thing means expanding and hiring another worker. That means one more person who could have had money in his pocket. And so on, and so on...

There are those that say, nah, don't worry about the business, they'll take care of their own. We say, nah, don't ignore the warning signs. The lending pendulum swings both ways, and this story illustrates the flip side of not having money available.

In other words, we're talking about all of our collective jobs.