As I have been tracking the effects of this tight economy, it seems as if there might be a little light at the end of the tunnel.
Last week, Wall Street reported its best week gains since November ’08 and Monday, President Obama will release financial support to small businesses via the SBA.
There are other not so bad signs such as the surprising rise in consumer spending in the month of March.
What does this all mean?
It means nothing at this point as we all wait to see what happens, but I am confident that good times are ahead.
Note that we are in a recession, there is no doubt about that and people are losing their jobs. But we must take into account what this recession is all about.
It is all about the global economy adjusting itself to where it should be. In other words, we should not have expanded our business on credit, we should not have purchased our first house on an 80/20 mortgage loan knowing we could not pay for it, and we should have not put ourselves into so much debt.
According to CreditCards.com, Americans have spent billions of dollars in credit cards in 2008, where there currently seems to be a downward trend since this recession finally caught our attention.
As I have blogged many times before, we are heading back to where we were in the ‘70s
Before we get back to the ‘70s, we must adjust our lifestyles to reality, hence this recession.
I think it’s great that the SBA will gain new funding for small business, but we must make sure we use working capital (loans or cash flow) appropriately, or we will be right back in the same boat.
Good Luck everyone.