Failure to Lend

Posted by BizBox under News
From http://bizbox.slate.com 5563 days ago
Made Hot by: DebMark on August 22, 2009 12:46 pm

BizBox's Anonymous Banker explains how the federal government's small-business lending program has utterly failed, and which banks are to blame.

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Comments

Written by DebMark
5560 days ago

The article makes one good point (not many ARC loans made) but undermines it with a silly point (banks are to blame). This was a stupid program to begin with, because banks could not charge any interest for ARC loans. Banks are profit-making institutions. They aren't going to make a loan if they don't make money on it. The fault lies squarely with the SBA. They screwed up, big time. If you were a bank shareholder you'd be calling for the head of the execs if they lost money by making idiotic interest-free loans. Sheesh! Dumb Obama bureaucrats.

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