This is the first installment in a new series, “evidence that we should freak out.” I’ve even created a new “financial collapse” tag for future reference.
Grain is piling up in Canadian ports because the sellers will not accept the lines of credit normally used by buyers to guarantee the purchase. FP Passport has the details.
October 12, 2008 at 3:16 am
There are rumblings that the entire bike shop industry in the US is based on these short-term (<12mo) credit accounts between bike shops and every manufacturer. When you buy a bike in a shop today, it turns out the owner of the shop didn’t pay for it already but instead took it out on some credit that he’ll have to pay back in the spring.
With the banking system in peril, those short term loans are dried up and every shop in the country is going to have to rethink how they do business.