ddavid

Should CIT Be Saved? I Think Not

Anyone that says small businesses can continue to operate as usual while its lender is in bankruptcy doesn't know much about bankruptcy nor is acquainted what a business environment entails.

Namely, the credit lines which have been established will freeze during bankruptcy. Small businesses need operating capital the same as large companies do. There are almost 1 million small businesses that rely on CIT with established credit lines to purchase raw materials and inventory to produce a product or services. It would not be unreasonable to estimate that several thousand of businesses out of a million could run into problems themselves or even its own bankruptcy if CIT fails.

It's preposterous to save the fat cats on Wall Street while the small business owner with several hundred employees could end up in the unemployment line. A Small Business is considered to be a net profit of $6 million or less for 2 preceding years - that takes in a lot of companies such as Baskin & Robins for example. CIT is the No. 1 lender to SBA and such would produce a large gap. Small Businesses also pay a larger share in taxes than large corporation per IRS -- do your research. Also 40% of large companies don't pay any. Read your IRS pages and there is always Google to find data.

I don't agree with bailouts but there must be a level playing field otherwise the system is corrupt and looses respect, and therewith future taxes not to mention loses to 401K`s and investors who in the past seeked bonds for safety and stability.

With attitudes that its OK to bail out those that caused this mess, the fat cats, but not Main Street we might as well teach each other and our younger generation how to milk the system. Yes, I know quite a few that do, managing rentals. Have your rent paid for 90%, food stamps, welfare payments, and let the consumer contribute to their utility bills. That 25 year old Lady I talked to this morning was heading to the beach while I worked my as*s off -- but that is what this country is coming to when our leaders are corrupt themselves then they teach corruption by example.