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They have started cutting costs like instituting travel bans to start out with, some put this in to effect last couple of weeks.
This hurts my company because we are scheduled to be hosting a conference in October and we are probably going to have only 2/3rds of the attendance we were hoping for. We also do many consulting projects around the world where they pay for our travel expenses and visit them and give presentations or just pay for consultants time to have round tables with executives or to organize panel discussions at their user conferences, etc.
Hopefully they stay smart because our advice helps them save money and make the right strategic decisions for their companies and its not that expensive relatively to their budgets.
The Obama, and McCain proposal for insuring accounts up to 250k is important for small business to do what your boss wants. Washington Mutual went under because accounts withdrew like 18 billion dollars over the course of days or a week and it collapsed. Accounts were insured only up to 100k dollars, and my Boss told me he heard about 1 company getting killed by this, they had put 1.5 billion dollars into Wa Mu this past year and lost it all when the collapse occured. I am sure they are not the only ones, small businesses with even 500k or a million in an account there might of lost their security. This is why the bailout needs to happen, there are other reasons but that situation is just 1 case.
Another 1 is Business loans, almost all companies carry debt. Young small companies use loans to grow by hiring new employees or for opening another store or to buy land to expand a winery, etc. Large corporations use it to build factories for example, financially especially for tax purposes it makes sense but they have the assets to keep their loans secure for the most part. Small Business loans do not have the protection of homeowners, at any time banks can call that loan in and if you can't pay it, they take your assets and sell them to recoup losses. Foreclosing on a home is a lot harder, they have to be delinquant in payments and its for months. Even if a business has paid every month on time for their loan it can call it in.
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