The following is guest post from a Mining Stock Journal subscriber who runs a family business in the northeast part of the country:
Our family has been in business here for over 100 years. Presently my brother and I run a collection of consumer-based businesses, including a hotel, restaurant and an apartment complex. We have very well run businesses with tight controls. All my top managers have been with the company for well over two decades.
Because of the nature of our businesses and related customer base, I have a first-hand, "front row view" of the economic condition of the average household. I can say with direct knowledge that the average American has entered an income and debt nightmare.
I'm writing you because the entire area where I live and work has finally hit a wall of debt. It's gutted our customers, our businesses, and the entire economy in my area...Everybody including small and mid-size businesses use debt to maintain their daily existence.
It finally showed up in ALL of our business starting this spring...our customers are BROKE and not coming thru the doors. Everyone up here lives by increasing their credit card balance each month, except for the very few that have their entire life savings in overvalued stocks. Before I wrote this, I asked my managers about their friends, family, and our employees. All are broke, living paycheck to paycheck.
Even in the alt-media, there is plenty written about the consumer being tapped out, but few are mentioning small and mid size businesses. Most are in the EXACT shape as the general public - just the numbers are bigger.
The drug use...heroin/meth is OUT OF CONTROL, a huge percentage of people up here can only survive with State and Federal assistance.
Dave, I'm not a gloom and doom'er, but starting the spring of this year...something changed...it's like a wall was hit. You can bet your ass this area of the county is a mirror image of what I see in my businesses and the surrounding communities. Something is close Dave, very close. I have never seen anything like it in my 60 years. We both know what's coming, and it's not good.
Sorry I don't have positive news......but it's the truth!!