Isn't this how we got in trouble in the first place?

[SteamWake]

Pressuring banks to make loans they wouldent have otherwise.

"It's time for those banks to fulfill their responsibility to help ensure a wider recovery, a more secure system and more broadly shared prosperity," said Obama.

http://www.washingtonexaminer.com/po.../65894577.html


Heres a bizzare idea.. Want to create jobs? Cut Taxes !

Oh and speaking of taxes...

Originally Posted by Nancy Pelosi

We are not raising taxes we are reducing the tax cuts.

[Platapus]

Many small businesses need a revolving line of credit to make payroll. This is especially true with businesses doing business with state and federal government agencies in which there may be a considerable delay between when the work was accomplished and when the government pays its invoices.

The company The Frau used to work for has about a 90 day delay between when they submitted invoices and when the government paid. The only way her business could stay in business was to take out a short term loan to make payroll every two weeks and then pay it back when the government paid them.

Crappy way to do business but that's life with the government.

In this case lowering taxes would not do much if a small business can't make payroll every two weeks.

"These are the very taxpayers who stood by America's banks in a crisis, and now it's time for our banks to stand by creditworthy small businesses and make the loans they need to open their doors, grow their operations and create new jobs," Obama said.

There is nothing wrong with banks loaning creditworthy businesses money. In fact, that is how businesses run in many cases.

[SteamWake]

Nope nothing at all wrong with lending money to credit worthy clients. In fact they do it everyday.

The devil lies in whom and how deem them credit worty.

[mookiemookie]

No, it's actually not. Profit margin and not pressure on the poor, poor banks is what caused them to make loans without regard to whether they would be paid back or not.

If you can make a loan and not have to keep it on your books, that's a pretty strong motivation to make it regardless of traditional lending standards.