Bad Credit Payday Loans Ga

Recovery won't hit hot pace this year

Yet there is good news for the state: exports, manufacturing and state tax revenue collections have all performed well.

Exports of Georgia, which rose 20.9 percent last year to nearly $ 29 billion, are growing at a clip of 18 percent this year. The savannah has everything to gain as port activity grows.

On the manufacturing front, the State took the opening last fall of the Kia plant in West Point and the expansion announced plans for Gulfstream.Companies that are export-oriented in their product mix, and are related to manufacturing, are poised to grow in the years to come. They can all thank a weaker dollar for their success, too.

While these are good signs, they will be offset by high oil prices, the sector of Georgia moribund bank, which is to affect small business growth and a construction industry paralyzed, causing our main driver growth - residential and commercial - to languish in the years to come.

Also, home values ​​have fallen in Georgia have also caused a shortfall in the budgets of the city and county municipalities redundancies for the first time in recent memory. Construction employment and the government represents almost 20 percent of the employment base. No wonder we have had virtually no employment growth in the last six months - a sharp contrast to job growth nationally.

Why is the banking sector in a bad shape? The obvious reason is the plethora of bad loans related to real estate.It happened because in the years before the Great Recession, the most lucrative business for banks was to lend money to builders to build houses, condos, apartments and office buildings. This was a good bet as long as house prices were rising and buyers thought they would continue to rise forever. But once the bubble of belief was broken, the safe bet into a Sucker Punch.

Why banks can not now make new loans to businesses not related to construction and are eager to develop credit?

Bad banks or banks with sheets of balance disorders either do not have capital to lend, or they have explicit orders to refrain from lending to preserve capital value. Banks are well save their capital or liquidity to buy the wrong stop when the FDIC banks in poor given Friday.

Rather than make a loan for an apartment complex (or even a hospital with guaranteed cash flow), the healthy bank prefer to buy distressed assets on sale Friday the bank and the chance to yield high for their shareholders.