A couple of quick notes about the local economy.
I think the deferred building fees is a wet noodle. No real demand.
I suspect the small business loan program that is being hatched in Congress is the same thing.
In both cases, I'm not sure it's even the proper response. Borrowing more money for already struggling business's? Trying to encourage more houses when we already have a huge oversupply?
Both seem sort of short sighted.
I know that in my store, I'm not going to be borrowing money to expand until I see demand increase. For instance, I talked lately about installing a couple of more shelves of paperback books, but my estimate was at least 1,000.00 to put it in, which I would have to either pull out of savings of use the credit cards.
With the slowdown in sales I saw this month, I'm going to delay that. Or install it over a three or four month period within my cash flow.
In other words, borrowing money in the face of falling demand seems kind of like borrowing from the future.
1 week ago