I guess I was being a little too optimistic with my earlier pronouncements that micros would have nothing to worry about in the current tightened credit market. No, it’s not that microbusinesses are suddenly having trouble accessing bank credit; we’ve always had trouble with that.

But what I didn’t anticipate was what is now happening in the credit card market.

I will say that the MicroEnterprise Journal’s economic analyst, Anne Wenzel of Econosystems.com, warned me about this a couple of weeks ago. Once again, Anne surprises me with her acute forecasting skill; I feel very lucky to have her on board with the MEJ.

Another thing that economists are starting to worry about, which I didn’t mention during the podcast, is deflation. That is, decreasing consumer demand will depress prices and lower profits, causing still more layoffs that will further depress demand, further depressing prices. Rinse, lather, repeat.

It’s the kind of thing that could usher in a long period of joblessness but, again, I’m wondering how the sturdy nonemployer business will come into play here. If newly unemployed consumers look to starting a lot of nonemployer businesses to keep the wolf away from the door, the implications for the recession and the recovery may be profound.

One final note: make sure you go vote tomorrow. I can’t say that often enough and you don’t need me to tell you how important this election is. Please … vote.

The Microbusiness News Briefs is sponsored by GoToMyPC.

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For further information:

Article: Consumers Feel The Next Crisis: It’s Credit Cards (NY Times)
Hearing Archive: Creating Opportunities for Small Businesses in an Economic Recovery (YouTube.com)
Report on Small Business Outlook (PDF)
SBA Office of Advocacy