Obama's message of the day was a proposal highlighted in his State of the Union address last week: funneling $30 billion to local banks so they can lend small businesses money they need to grow their enterprises and create jobs.

Does this Presadent not realize that small businesses won't borrow more money to expand or hire more employees unless there is more demand for their product and or services?

Or is he simply expanding his grab for more private sector contol?

Originally Posted by dklassen

Does this Presadent not realize that small businesses won't borrow more money to expand or hire more employees unless there is more demand for their product and or services?

Or is he simply expanding his grab for more private sector contol?

The big banks won't lend money so the thought is give the money to local banks who know the businessmen in the area.

Think micro banking.

Yes but... "small businesses won't borrow more money to expand or hire more employees unless there is more demand for their product and or services."

Companies don't hire just because a bank will loan them money. Business 101.

I agree with you dklassen. I have tried to justify the proposal in my mind, but it doesn't make sense. It really does seem to put the cart before the horse. From The Hill:

http://thehill.com/homenews/senate/7...ing-tax-credit

Also, did you happen to catch Sen. Gregg, calling out the head of the OMB??

http://www.unionleader.com/article.a...a-93c9d6762642

Originally Posted by dklassen

Yes but... "small businesses won't borrow more money to expand or hire more employees unless there is more demand for their product and or services."

Companies don't hire just because a bank will loan them money. Business 101.

Ok...so what would you do? Anybody got another plan? Not being nasty just asking.

Originally Posted by cologal

Ok...so what would you do? Anybody got another plan? Not being nasty just asking.

This is a capitalist free enterprise Country so Obama should leave the private companies, including Banks, alone.

Most companies have been in a hunkered-down mode since before the election (2008) They have a wait and see attitude. The verdict is still out whether this is a business-friendly administration.

Originally Posted by cashman

This is a capitalist free enterprise Country so Obama should leave the private companies, including Banks, alone.

I suppose you didn't support TARP correct?

Ok...so what would you do? Anybody got another plan? Not being nasty just asking.

The plan is simple. Among other things, income tax and capitol gains tax cuts... not rebates, CUTS...for everyone.

If you you get out of the way, people will consume and businesses will produce.

When business is afraid of what Obama is going to do and trust me they are, they stop hiring and borrowing. They downsize in preparation for the unknown just like most people do with their personal budgets.

People see the Democrats on a massive spending binge bringing us to historic and unprecedented levels of debt. People aren't dumb, they know whats coming. Huge tax increases, inflation, hight interest rates and more.

Our economy is private sector, capitol based. Most everyone knows that Obama is not. Until that changes you can kiss our jobs goodbye.

Originally Posted by cologal

I suppose you didn't support TARP correct?

I did not support TARP and I do not support Obama's idea to use the returned TARP money for
other uses. Under the law the returned money must be returned to the general fund.

This is the result of electing a theoretical President.

Liberals are insane but we were stupid.

For the record, I didn't vote for him.

Yoda

The Democrats announced they are going to change the law so they can tap into the TARP money for other uses. Big surprise!