Christmas shopping early.....not cool...but needed

The financial crisis is all about credit....the stock market is what everybody is talking about....but the economists are all talking cash flow.  Remember the phrase...Cash is King.  The real issue uis commercial paper and credit lines that companies use to pay their everyday bills....inventory, payroll.  I heard a story last week that stated that Marriott borrows 35 million dollars a day to run their business.  They are a solid company....but they are having issues getting the commercial lenders to give them their daily dose.

So what does this have to do with Christmas shopping?  Inventories will be low is my guess.  Without a credit line or other types of borrowing, companies both large and small will not be able to bring in a lot of inventory and then wait for sales.  The vendors will want their monies when the inventory is delivered.

This whole credit issue s a vicious circle.  No loans for business....no inventory...no way o get sales....slow business....layoffs.....This will get worse before it gets better.  I think with the shopping season coming right at the credit crunch time....a shopping season whereas many retailers make their whole year in the 4th quarter....scary! 

So shop early or you will be giving gift cards!