Editor's Blog


I've Got the Bailout Blues

October 3, 2008
/ Print / Reprints /
ShareMore
/ Text Size+
Bailout or keep bailing?


That eardrum shattering noise you’ve been hearing is the construction industry grinding to a halt. Will the gears that run our economy unclench?  If so, when?

A couple hours ago, the House of Representatives joined Congress in passing the financial “Bail Out Bill”. President Bush quickly signed the measure so taxpayers like you and me can throw $700 billion at the problem.

Politicians and pundits are lined up to give their spin on what will come next. Most agree our economy will not see a true rebound. The $700 billion will simply avoid catastrophe and reduce further meltdowns from Wall Street to Main Street.

Do we dare hope for a quick turnaround for those whose livelihood depends on the construction trades?

I suspect not.  Skepticism is running extremely high. I just checked a poll posted on MSNBC’s website (www.msnbc.com).  Although labeled as “non-scientific”, it’s hard to argue with 85,000+ responses.

Here’s what the poll asked: “How confident are you that the financial bailout package approved by Congress will ease the economic crisis?”

Here were the results as of 4:30 p.m. Friday, Oct. 3, 2008.

Very confident: 4.4%
Fairly confident: 11.0%
Somewhat confident: 27%
Not at all confident: 57%

Wall Street also responded poorly.  The Dow Jones Industrials Average was down 157 points today.

I’m no research wiz, but those responses don’t sound the least bit encouraging.

How is this historic financial rescue plan supposed to help builders, tradesmen, developers, architects, engineers, wholesalers and other construction pros?

Theoretically, it will provide confidence and reassurance for banks to loan money.  Those who run companies will have increased odds at getting funds to meet payroll, buy equipment and materials, pay subcontractors, suppliers and other vendors.

Realistically, it will help keep solvent some firms on the edge of bankruptcy.  They will live to fight another day. But the bailout won’t open any floodgates. Banks will remain paranoid, creditors will continue to hound debtors, and new buyers will remain skittish.

My guess is that projects already started can be saved. And those projects funded by the government or large institutions will keep moving forward. Just don’t look for a wave of new business, especially in the residential market.

Will the bailout help your business? I’d love to know. Post your response to this blog or email me at fauscht@bnpmedia.com.
You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

Podcasts

Have a limited marketing budget but realize the importance of neighborhood marketing? Try doorknob hangers, a low-cost, yet highly effective way to drum up more business. In this episode, John Braun discusses the value of this tactic as well as what you should include on the materials you're hanging.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2014 September

The September issue of ICS features stories on moisture detection, disinfectant services, neighborhood marketing, then we discuss the last level of being phenomenal, and cool products.

Table Of Contents Subscribe

Social Media

Social media is a good way to regularly keep in touch and interact with current clients and reach potential ones. What social mediums do you use in your cleaning/restoration business?
View Results Poll Archive

THE ICS STORE

Get Paid! book cover
Get Paid! (ebook)
Over 30 authors – over 40 articles…from attorneys, contractors, consultants, instructors and others, both inside and outside the restoration industry. R & R, C & R and Cleanfax, opened their archives and gave us the best they had, other chapters were created just for the “Get Paid!” book and its readers. And every one of them has ideas for how to get paid what you are owed.

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.pngcrc logo