So since my last Blog entry 10th Sept. (sorry been busy) we have seen cataclysmic events in the banking sector.
Lehman Bros, HBOS, Merrill Lynch, AIG, all effectively bust.
When asked if he thought any other big banks would fail/be gobbled up or merge a banking expert said last night "I don't know its only Wednesday"!
The stench of fear is driving things now, I have been predicting crisis for months, but I am frankly stunned at the names that are toppling over. Where will it end?
For SME business people (my client base) I am predicting the following
- Less credit availability
- More expensive credit
- Many will fail because their banks have lost control and pull in lending to SMEs
In the last 12 months we have been warning business people to cut costs, cut costs and cut costs. Manage cashflow daily, make sure your debtors pay on time. Boy at times I thought we were barking up the wrong tree, seems not.