President Obama has a new plan to boost up the economy. But is his intension really to help or to make another step to gain more control over the financial institutions like small community banks? Our community banks are successful because they are for the most part very conservative with their lending decisions. If this program will pass another government agency will be created – Small Business Lending Fund. What will be the purpose of such an agency? In my opinion this agency’s role will be to punish those banks who after taking the money from the fund will not lend under the rule of the agency. Community banks who will take the money from the government will have to loose their lending practices and in time they will be on the road to fail just like Fannie May and Freddie Mac. Great effort by the President to nationalize the banking industry through small potentially not harmful regulations. We do not need more funds to be able to lend money! Banks have enough funds to lend money to small businesses without this agency, but in this economy, where nobody knows what’s going to happen tomorrow, nobody wants to take risks. Even merchants instead of hiring people cut on staff due to plummeting job market. Mr. President, create some jobs first please so people can pay off the money that you want to lend to them and stop trying to influence community bank executives to change their practices. They are surviving this hard times without your advice and they do not need to be told how and when to lend money. The best way to create jobs is to give tax cuts to big companies so they can start coming back to U.S. from China, Taiwan, Mexico and other parts of the world. If this nation will not produce and sell, unemployement rate of 12%-15% may be here for a long time. We need to produce and sell to the world so capital will be coming in not leaving the U.S.
Small Business Lending Fund – new government agency to control small business lending practices
President Obama has a new plan to boost up the economy. But is his intension really to help or to make another step to gain more control over the financial institutions like small community banks? Our community banks are successful because they are for the most part very conservative with their lending decisions. If this program will pass another government agency will be created – Small Business Lending Fund. What will be the purpose of such an agency? In my opinion this agency’s role will be to punish those banks who after taking the money from the fund will not lend under the rule of the agency. Community banks who will take the money from the government will have to loose their lending practices and in time they will be on the road to fail just like Fannie May and Freddie Mac. Great effort by the President to nationalize the banking industry through small potentially not harmful regulations. We do not need more funds to be able to lend money! Banks have enough funds to lend money to small businesses without this agency, but in this economy, where nobody knows what’s going to happen tomorrow, nobody wants to take risks. Even merchants instead of hiring people cut on staff due to plummeting job market. Mr. President, create some jobs first please so people can pay off the money that you want to lend to them and stop trying to influence community bank executives to change their practices. They are surviving this hard times without your advice and they do not need to be told how and when to lend money. The best way to create jobs is to give tax cuts to big companies so they can start coming back to U.S. from China, Taiwan, Mexico and other parts of the world. If this nation will not produce and sell, unemployement rate of 12%-15% may be here for a long time. We need to produce and sell to the world so capital will be coming in not leaving the U.S.
http://www.greensheet.comemagazine.php?issue_number=story_id=1804