Archive for February 22nd, 2010

Bank Lending Will Improve— Slowly

February 22, 2010

Says Chamber of Commerce Economist at Dealer Expo

INDIANAPOLIS — If you’re looking for working capital for your small business, don’t count on getting it from your local banker any time soon, says a leading economist. Martin Regalia, chief economist for the U.S. Chamber of Commerce, told a gathering of business executives at the Dealer Expo here it will take about six months for banks to return to “normal lending practices.”

Martin Regalia

Speaking at the annual meeting of the Motorcycle Industry Council (MIC), Regalia said that it will take time for banks to define the risks— financial and regulatory— before they feel comfortable lending again.

“The biggest factor in getting banks lending again is time,” said Regalia. “Banks are in it to make money like everybody else, and contrary to what the president says, you cannot run a free enterprise system without risk.

“Risk is what we all take. It’s what we all manage, and it’s why we make the money we do. Without risk, there is no return—nobody pays you for certainty. So, banks are in it to manage risk. As time goes on a little bit, they will get a better feel for that risk, and they will begin to lend, and they will probably, at some point down the road, overshoot again and under price and over lend to the risk. But that takes time.”

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FirstGear TPG Apparel Road Test: There Will be Rain

February 22, 2010

Back in the fall, we had a chance to head out to Colorado with Tucker Rocky and FirstGear to check out the TPG lineup of apparel. This is pretty high-end stuff aimed at the hardcore adventure touring rider, the type of person who thinks nothing of clocking 50,000 miles a year on two-wheels, often in less-than-pristine conditions. I am not one of those people. However, I was up for a dual-sport ride through the Rockies with the chance of experiencing some weather and putting the TPG duds to the test. Well, we got weather. Rain. Sleet. Hail. All that stuff that’s mostly foreign to So Cal natives (me!). 

So, you’ve got to hand it to Tucker Rocky and FirstGear for picking a such a route and ride as a way to showcase the features of its TPG (Technical Performance Gear) apparel. They either had strong foresight into what we might encounter or had some major pull with certain parties to arrange that kind of weather.

Click here for the full story.

U.S. Economic Outlook Turns MIC Breakfast Sour

February 22, 2010

Very Slow Growth Expected In Foreseeable Future

INDIANAPOLIS, In.  (Feb.22)—  Looking for the Good, the Bad, and the Ugly of the U.S. economy this year? Well, we heard all about it during the Motorcycle Industry Council’s annual meeting at the Dealer Expo here.

Martin Regalia

The U.S. Chamber of Commerce’s chief economist, Martin Regalia, plopped the unpleasant news right in the middle our breakfast coffee and donuts in a most unappealing fashion. Unfortunately, the bad and the ugly outweighed the good by a wide margin.

Regalia saved his heaviest punches for President Obama’s new budget. But more about that later.

Here’s Regalia’s outlook, in a nutshell:

The Good: We’re coming out of the recession, although very slowly.

The Bad: We’re not growing fast enough to replace all the jobs we lost, among other things

The Ugly: We’re staggering under so much federal spending that we may never get the budget (more…)