Every time we turn on the TV, all we see are gloomy things about our economy.  Debt is out of control and no one is paying it back!

Lesson learned - people can't be trusted to manage their finances and debts.  Banks learned that the hard way.  All credit cards and other forms of consumer finance businesses are experiencing extraordinary losses - peole are in debt, and they can't pay it back.

Small business owners are concerned because they think that they are unable to get credit at all.  That is partially a myth, a hysteria embedded into the chaotic daily news.  In fact, even giants like HSBC realize that business lending is strong and necessary for all future profits.

HSBC is a major player for Initial Underwriting Group and its customers.  More than 50% of financing is related to the London based bank.  "In light of this, we have taken the difficult decision that, with the exception of credit cards, we will write no further consumer finance business through the HFC and Beneficial brands in the U.S. and close the majority of the network."(1) An official bank statement said on March 4th.

All small business owners are reminded to read the fine print, and avoid listening to the doomsday sayers on CNN and FOX News.  Sure the lending institutions are more careful about their investments, but consumer finance news should not be mixed with business news.

"Brendan McDonagh, the chief executive of HSBC's North American operations, said it would continue to expand" its U.S. banking business, even though the finance company offices would close.(2)

1.  http://www.thestreet.com/story/10466944/1/hsbc-trims-us-lending-as-net-plunges.html?cm_ven=GOOGLEFI

2.  http://www.iht.com/articles/2009/03/05/business/norris06.php