tag:blogger.com,1999:blog-16816866.post1554737784976735487..comments2024-02-29T02:10:56.878-08:00Comments on J O S H U A P U N D I T: Money Laundering Obama StyleFreedom Fighterhttp://www.blogger.com/profile/13649470110087808596noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-16816866.post-51288498864321149542010-02-04T14:13:25.820-08:002010-02-04T14:13:25.820-08:00I think the expression "a broken clock is rig...I think the expression "a broken clock is right twice a day" applies here. It is clear that they banks are not lending money right now. There are a number of small business owners who have GREAT projects in the pipleline that if completed would result in ENORMOUS profits. This would in turn result in MASSIVE tax revenues for the government. Unfortunately the banks, for whatever twisted reasons, WILL NOT lend the money even though the chances of loss are almost NON EXISTENT. I know some of these business owners. <br /><br />If this money will be used as Obama says it will be used and given to community banks and the community banks will lend the money to these deserving businesses then Mr. Obama is correct and Mr. Gregg is wrong. Many of the businesses are solid businesses who simply need a loan that they will pay back at reasonable interest rate to complete the projects and realize these profits. The profits from these businesses ventures will be taxed of course and the taxes will pay down the deficit at a much faster rate than simply using the tarp funds to pay down the deficit.<br /><br />Of course if the community banks take the money and don't lend or it ends up being funneled into certain special interests that have dubious economic benefits then this is a bad idea. <br /><br />Again, if the funds are really used to lend to small businesses then Mr. Obama is right and the Republicans are wrong. My suggestion to the Republicans would be to go along with the plan and insist on some sort of mechanism to ensure that the community banks who receive these funds actually lend the funds out to small businesses.<br /><br />The projects that can't get funding becuase for what ever perverse reasons the banks haven't lent out the funds to bring them to fruition would be enormously profitable and would result in substantial tax revenues. In addition, the people who would be employed as a result of these projects might even be enough to end the recession. <br /><br />Bottom line: Get the banks to lend again. I suppose if they are reporting record profits as it is then maybe there is no incentive to lend. Why take minimal risk when you can take no risk and still be profitable. If TARP funds are necessary to get the banks lending, then so be it.B.Posternoreply@blogger.com