Small Business Bankruptcies Up 81% in California
Posted by Jim Hoft on Wednesday, December 23, 2009, 10:14 AM
When your government creates a $787 billion stimulus plan and forget to add any goodies for small business, the driving force behind the economy, these things happen.
Small business bankruptcies up 81% in California. And, it’s only just beginning.
The LA Times reported:
The Obama administration’s new plan to give a boost to small businesses reflects continued trouble in that sector, which is facing new failures even as much of the nation’s economy is stabilizing.
As credit lines have shrunk and consumers have cut back on spending, thousands of small businesses have closed their doors over the last year. The plight of struggling firms has been aggravated by the reluctance of banks to lend money, said Brian Headd, an economist at the Small Business Administration’s office of advocacy.
“While bankruptcies are up, overall, small-business closures are up even more,” Headd said.
California has been particularly hard hit. The latest data show small-business bankruptcies up 81% in the state for the 12 months ended Sept. 30, compared with the previous year. Filings nationwide were up 44%, according to the credit analysis firm Equifax Inc.
The actual number of small businesses in trouble is probably higher, experts said, because many owners file for personal bankruptcy rather than seek protection for the business.
When you have an administration in Washington that continues to demonize business and outrageous barriers at home stifling business, is this really a surprise?
Related… The New York Times reported today that the $154 billion jobs bill passed by the House last week will allow the 217 Democrats who voted for it to tell their constituents that they care about unemployment. But it’s unlikely to do much else.
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Horrible… Obama Tells Foolish Supporters: I’m Not Over-Spending… “I’m Running to Pay Down Our Debt”
Published May 23, 2012 at 11:51 pm - 64 Comments
Betsy Ross commented:
I don’t know how many of you out there have friends in the banking business but if you do, talk to them and find out what is going on with the new banking regulations they will soon have to follow. In short, the new regulations will make it MORE difficult not less to loan money. So, on the one hand, banks are restricted in their ability to do business but politicians, obama, specifically, will tell the general public that “fat cat” bankers are being stingy with their money and won’t lend. It is very, very troubling to see good people in the banking business being put in an impossible position. Make no mistake, this is all done on purpose.
Robert commented:
Construction companies of more than 5 people, as opposed to more than 50 people in other industries, will be forced to provide health insurance benefits under the new bill.
This will inhibit new companies from starting up.
Gina commented:
As employee of a small business in California, I’m not surprised. The strangulation on business of tax and regulatory binds becomes all too apparent in a recession. Would that we would not forget this when things get better. Not that it will make any difference- California is hopeless.
Joanne commented:
I don’t doubt if Obama will blame small businesses for not making and providing jobs.
Robert commented:
They are putting a 10% tax on tanning salons. This will also incur an increase in paperwork and accounting time by the business.
Nahanni commented:
Within the next 120 days many businesses will go bankrupt, the commercial real estate market will totally collapse, more people will default on their mortgages and those banks that were “too big to fail” will implode. Combine that with the actions of the Corruptocrats who are behaving like five year olds that think money grows on trees and you have the recipe for the total collapse of the economy and the US Dollar not only as a reserve currency but as an instrument of international trade.
All of this will drag the rest of the world down with us. China is a house of cards, Europe has it’s own banking scandals going on along with some of the weaker links in the EU defaulting. Japan has it’s own problems and they have just been exacerbated by the Dubai fiasco. The list could go on and on.
What does that all mean for you?
The end of life as you know it. You won’t be able to buy anything because the banks, businesses and financial markets will be closed. Forget about getting anything that has to be imported. You might as well use the Dollar for toilet paper anyway because that will be about all it will be good for. About the only people who will have work will be those in industries that will be “nationalized” under FEMA like law enforcement, medical services and communications. There will be chaos, anarchy, hunger, theft, rioting and general lawlessness-it will be the perfect “crisis” that the totalitarian regime in Washington has been waiting for with all that entails. Can you say martial law, suspension of the Constitution and Bill of Rights, no travel allowed, all communications censored? I knew you could. There will be alot more things that you will learn how to say by the time all is said and done.
Eric commented:
Ayn Rand couldn’t have written a better script for the life that is imitating her fictional work in Atlas Shrugged. It’s inconceivable to me that the politicians in charge haven’t read that book, they are following it like it’s their game plan.