http://whitehouse.blogs.foxnews.com...-to-announce-new-small-business-lending-fund/ Any plays off of this? Buy a name like RF?
What would be the difference this time? There are still no rules to ensure the Banks will lend once they receive the money.
This would change public perception of the small banks and put pressure on them to make more small business loans which they should be doing anyways during these thus far unaccounted for hyper-inflationary times.
Please tell me how this lending of $30,000,000,000 to small businesses will make any difference, why would creating a $5000 TAX credit for each new employee they hire do anything for this economy, businesses are struggling more then ever to keep their doors open for business, do you honestly think that they are going to hire more employees whether its 2 employees, 18 employees or 50 just to receive some kind of tax credit. Take a look around your local city and see how many storefronts are empty, there is no need to hire now. IF the business isn't there than what is the advantage of this. They are trying to get small businesses to start hiring again when in fact there is no reason to do so during these tough economic times. They are also trying to dish out loans to small businesses, again what is the purpose of this, near me there are dozens and dozens of storefronts closed, why would anyone want to go out and open up another subway sandwich shop, a dunkin donuts or another pizza shop. They can lend out as much as they want to, its not going to make much of a change, anyone thinking this kind of "jobs package" is going to create millions of jobs is only fooling themselves. Forcing job growth is not the answer and spending money to create jobs is certainly not the answer either.
I think it is just a lot of news noise to push the market higher. I noticed today the futures are out of sync with the stock market moves in the NQ and ES. I just see it as another chance to go short. I remember in school that there was just as many millions made as lots in the great depression. In Canada in the late 80's when interest rates were in the high teens the government and the Banks were still offering incentive programs to open business and in the construction trade.
it's nos so much even to hire...the banks that DO have the money can't find good prospects to lend to as many's credit is trashed or maxed out. But if the government will back it, regardless if one will be able to pay it or not based on their risk...hey more free $$$.