Photo credit: @julesdwit.
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Roben Farzad of Bloomberg Businessweek
How to Grow the Economy
with Roben Farzad
Roben Farzad, a senior writer for Bloomberg Businessweek, begins a weekly series this month looking at Obama administration economic stimulus programs. This week: the Small Business Lending Fund.
So instead of, as during the New Deal when we had direct hiring and lending from the government, with oversight, we have a "good faith" program, in which we're supposed to trust the very people whose greed got us into trouble to do the lending and hiring. And they don't do it. Without consequences, because there aren't any, unlike with direct government programs where we get to vote people out of office if their programs don't work.
Yes, I know--now there may be responses about how bad Big Government is and how liberals/Democrats (I'm neither) always want government to take care of anything. But the vote does have some consequences. How does Big Business?
What does Section 342 of Dodd Frank have to do with financial reform? This section declares that race and gender employment ratios must be observed by private financial institutions that do business with the government. It’s nothing but a power grab - the new law inserts race and gender quotas into America's financial industry. It has created twenty Offices of Minority and Women Inclusion, where they all get their own Administrator & staff, within the Treasury, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the twelve Federal Reserve regional banks, the Board of Governors of the Fed, the National Credit Union Administration, the Comptroller of the Currency, the Securities and Exchange Commission, and the new Consumer Financial Protection Bureau. Sounds like more make-work too me. Who pays for this? This is a farce!
The focus on loans is all wrong.
The lesson of the "financial crisis" is thatcriminal activity by banks, mortgage companies and wall street goes unpunished.
The lesson for people, business or otherwise,
is the problem is _not_ being addressed.
TARP is a non-performer. NYC banks are not willing to lend, even when our company is 5 years old, has dramatically increasing sales, POs from big box retail stores, and has just opened a new manufacturing facility.
The SBA contact we work with dismisses TARP as an option.
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