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CIT, provider of financing for about one million small businesses, plans to file for bankruptcy as soon as Sunday night or early Monday. -- WSJ
Middle America is about to experience a total collapse.
Jim Sinclair explains:
The so called quick surgical bankruptcy of CIT will result in a company that will only be able to provide 20% of its previous level of financial services to Middle America according to Friday’s Wall Street Journal.
Any institutions replacing these services will have:
1. Higher levels of credit worthiness to be met by small business.
2. Less funds committed to these loans.
Further, the assets of CIT in bankruptcy are the middle American loans outstanding that will be brutally attacked by the bankruptcy process.
That is going to result in a flood of middle American businesses declaring bankruptcy.
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Related: 24 Days