Essentially, the news is all about the Government’s intervention in helping financial troubled American International Group (AIG), THE insurance company. The record-breaking rescue package for a private company – $150 billion, including $40 billion for partial ownership.
The Fed’s initiative could provide traction to today’s recession
Although not in a position to stop the economy from declining, what The Fed did will bring positive impact on small businesses worldwide.
AIG is an insurance authority company with 1 trillion in asset – by having presence in 130 countries, every little but positive change in AIG’s future will spark hope to the insurance industry and impact small businesses.
You can’t deny the fact that every country listens to The Fed. They raised interest rates, worldwide economy crumbles. They did positive initiative, worldwide economy recovers.
The fund will surely help AIG to recover their losses, while buzzing positive sentiments – AIG per share price rose almost by 20 per cent after the press release (as of 04:00 PM GMT), and counting. Keep an eye on stock markets worldwide that will rise due to the great news.
How small businesses reap the benefit?
Perhaps not instantly affected, but small businesses will benefit indirectly. The positive sentiment of global economy will offer customers with more options, which eventually will affect small businesses in increasing their financial performance.
As long as the Governments or small business authorities act and respond positively on the Fed’s example (that also feature a $700 billion financial rescue package to aid the economy recovery process) to aid small businesses, especially in business financing through tax incentives and loan interest rates reconsolidation.
What to do if your local government or small business authority ignored or acted unresponsively on the Fed’s initiative?
It has always been every business’ responsibility to grow the business. If you can’t count on your government, you can always count on your peers and fellow small business owner to collaborate and help each other out.
I certainly hope so.
Noobpreneur on the Fed’s rescue plan
Image by Mike Licht, NotionsCapital.com.