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Sac & Story county IA | As to small retailers, there were plenty that went down. If there was a small retail outlet that had one customer go tits up, he was screwed. No repossessing stuff on the ground. The local bank got shut by FDIC. The big problem was most farmers in the area had a commitment from that bank for financing for the year. Dealers had spread fertilizer with the money supposed to come from that bank.
I flew an airplane for a wholesale outfit. Most of the flights were to court appearance in bankruptcy cases. Shortly after, the wholesaler sold to a national outfit.
When things tighten up and banks need to improve quality of loans, bad things happen. A borrower that has never missed a payment and current on the terms of loan can have loan declared no good. One customer can pull a bank down. Quite obviously not all banks but when things tighten up, all loans become questionable. | |
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For those who survived the 80's?
