The Federal Government says representatives of major banks have been invited to a summit with small business owners in Brisbane today, to try to restore confidence in lending.
Now that is a good thing, in light of what is happening at large in the banking sector for example: As the furore over the unintended consequences of the Government's guarantee scheme again dominated parliament, it emerged fund managers Perpetual and AXA had frozen redemptions in $4.1 billion of investors' funds, as a rash of investors attempted to withdraw their money. Perpetual and AXA have followed Challenger Howard, the country's biggest mortgage fund, which froze $2.8 billion of redemptions earlier this week.
So the fear among small business is that there will be no money to both borrow and lend, inorder to manage the all important cash flow. Cash flow as you know is the life blood of the all small businesses large and small. Small Businesses keep the economy ticking over. I am sure cooler heads will prevail and governments and business will come up with a solution that does not take domestic taxpayers for a ride.
0 comments:
Post a Comment