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Welcome to the Gross Reality. My name is Steve Gross and I will be your host for the next hour.
This is a show aimed at those of us involved in business as an owner, a motivated manager, or a young business person building their skill sets for the future. You can listen to past shows here.
We are not a show about money, but about achievement, personal responsibility, self esteem created by real accomplishments, and the personal freedoms needed to allow these activities to occur.
Additionally, we also support and defend free enterprise, enlightened self interest and a commitment to capitalism, that is not corrupted by special deals and influenced by government. We need to stand up to corruption, both private and public and recognize the enemy that it is to freedom and free enterprise.
As a CPA and cofounder of HLB Gross Collins, an Atlanta based regional accounting and consulting firm, I have seen, advised, invested in, and consulted with many companies. I have seen success, failure, struggles with economic cycles or industries going through changes. Those that accepted change as normal, and challenges as part of the choice to be in business had an advantage, and in more cases than not, have succeeded.
We will join our guest Charles Green a moment but first our weekly feature – The Good, The Bad and The Ugly.
This week’s Good
- Fed left interest rates low – so interest rate pressure hasn’t affected business yet.
- Inflation rates are still low – not putting pressure on materials or labor rates yet.
- Dollar is stable in the world – not showing pressure yet with its massive borrowing.
- Stock market is relatively stable and economy is growing, if less than last quarter.
The Bad
- Consumer spending has dropped and is showing weakness again.
- Housing sales have dropped by 10% probably due to the expiration of the housing tax credits. If slow down continues, could be further drop in housing prices ahead.
- European debt issues seem to be spreading across the E.U. as country after country is forecasting deficit and borrowing issues.
- Greece putting their islands up for sale to lower deficit
- Is an unwinding of the Euro ahead?
The Ugly Gulf oil spill continues to flow unabated.
- The well hasn’t been capped and oil continues to leak into the Gulf. It appears it won’t be until August that relief well is drilled to give a chance to cap well. It took 9-1/2 months in 1979 to do this in 200 ft of water.
- The spills are now drifting onto Florida beaches and Mississippi beaches resulting in resorts being emptied, restaurants empty, summer season for business being lost, rentals down or disappeared, and real estate sales has dried up and come to a stop.
- In storm season and oil could be dumped ashore in mass in such storms.
- Long term problem and bureaucracy of government is one of biggest barriers to clean up.
- Courts have shown first response to government overreach – injunction against drilling.
Appears financial regulatory overhaul is coming to a vote. According to Senator Dodd, no one will know how this works until after it passes. Grants unsupervised power to grab companies and assets government decided are “risks to system”. Will this precede take over of financial industry by government?
Immigration Reform
- Pitting states against Fed. Government
- Arizona being sued by Fed government for border law and ID’s.
- Feds refuse to enforce border safety and are now suing to flight states from doing it.
- Feds are saying no to border safety until amnesty is passed.
- Courts will decide this one.
Now on with the show for today.
Charles Green is one of the nation’s preeminent authorities on small business financing with more than 30 years of advising, financing, and investing with entrepreneurs. He consults with small businesses on a broad range of business matters through Charles Green & Company.
Previously, he founded and served as President and CEO of Sunrise Bank of Atlanta, and prior to that was involved in small business financing through banking, venture capital, and as principal of his own firm.
He authored the The SBA Loan Book (Adams Media, 1999, 2nd Ed. 2005, 3rd Ed. to be released October, 2010), Streetwise: Financing the Small Business (Adams Media, 2003), and the Comprehensive Handbook for SBA Loans (Advisory Press, 1996). He has been interviewed about small business financing by CNN, CNBC, Bloomberg, Associated Press Radio, Business Radio, Entrepreneur, Inc., Success, Crain’s Business, Fortune Small Business, Business Week Online, and many other media outlets.
In 2005, he was recognized as the Financial Services Champion by the Georgia District Office of the U.S. Small Business Administration, and earlier recognized as an outstanding advocate for the National Association of Government Guaranteed Lenders.
He earned a B.S. in Finance from the University of Alabama, and completed the Stonier National Graduate School of Banking at the Wharton School of Business. He resides in Atlanta, GA and may be contacted at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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- What is the overall status of Georgia Banking industry?
- What will the impact of commercial loan defaults be to my bank?
- The accounting profession seems to be on the path to requiring loans to be fair valued.
- Does this matter and why?
- In your perspective of watching up close, in cases where they are issued cease and desist or have been closed, what happens?
- To banks
- To customers
- To directors/management
- To investors
- We hear about bank takeovers and loss sharing agreements – what is this lost and how does this work?
- How do small business owners proceed to grow in an environment where there bank is not lending or terms are not realistic?
- What is your prognosis for the banking industry?
Reading Assignment Health Care Reform Bill Insurance Market Provisions Timeline(as revised by the House Reconciliation Bill)*
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