📈 Americans Struggle to Borrow Money
New York Federal Reserve Survey Finds Credit Harder to Obtain
A survey conducted by the New York Federal Reserve Bank reveals that nearly 60% of Americans say it is harder to obtain credit than a year ago, the highest level since 2013. Inflation is predicted to be worse in the year ahead.
🦈 Kevin O’Leary on Borrowing for Small Businesses
Chairman of O’Leary Ventures and Shark Tank Judge Discusses Loan Difficulties
Kevin O’Leary, Chairman of O’Leary Ventures and Shark Tank judge, discusses the difficulties small businesses face in borrowing money. Factors such as Silicon Valley Bank’s shockwave through regional banks, raising interest rates, and drying up of liquidity have made it harder to borrow.
💰 Money Tight for Small Business Owners
Liquidity and Capital Shortage in Financing Receivables
Small business owners, especially those with over 50 investments in private companies, are experiencing the effects of capital and liquidity shortages in financing receivables. Two weeks ago, borrowing against receivables at around 7-9% changed to 17-30%, making it harder to borrow money.
📉 Market Impact of Liquidity Drying Up
Wait and See Approach Urged
Kevin O’Leary warns of the impact of the drying up of liquidity in the market for small businesses. He urges a wait-and-see approach to assess the effect on the market and the CPI data before raising interest rates.
🏦 The Need for Regional Banks
Super-Regional Banks to Replace Small Banks
The debate over the need for 3,000 small banks in America continues. Kevin O’Leary argues that super-regional banks will replace small banks since the latter will not be able to attract. He suggests that the market be allowed to decide rather than guaranteeing every tiny bank.