Wall Street Change offers simple, logical solutions to tough economic problems
that appear to have been caused by Wall Street Investment Fraud.

Wednesday, January 27, 2010

Barack Obama to fix small business by offering a 30 billion dollar stimulus package, better solutions exist.

Consumer Credit Card debt costs americans 15 billion dollars a month. So when Barack Obama talks about a 30 billion dollar credit stimulus program for small business , I somewhat chuckle.

It would be far better to simply incentivize the reduction of consumer credit card debt. Offer super low interest rates on existing credit card debt to anybody who can pay down their debt. This would instantly begin to stimulate local economies all over the country and act as a customer creation model for small business.

No matter how easily one loans money to small business, if the customers are not out there because they are already steeped in credit card debt, it just won't matter.

Compared to record breaking consumer credit card default rates that have been ongoing for well over a year now, it seems to me that getting the largest number of consumers to pay down their overall credit card debt would be the best, fastest way to stimulate our economy.

And it would not require the government riding in to give us money that was already ours to begin with. Barack Obama's state of the union address seemed to be big on government intervention rather than creating pure stimulation of local economies through consumer credit card interest rate reductions.

1 comment:

Ron Sturgeon said...

So Obama is going to free up the loans to small businesses?
The Banking System Doesn’t Need More Money

As a small business owner with a lot of friends who also own small businesses, I get tired of hearing all the news stories about how small business lending is going to get a shot in the arm from President Obama’s programs or any other source in the foreseeable future. Yesterday I listened to a speaker from one of the large banks talk about how many loans the bank was making, doing its share to get the country moving again. All the banks are simply not making business loans unless they are absolutely gold-plated. Period. This isn’t because they don’t want to make loans; it’s because they’re being criticized by examiners.

The regulators have made it clear to banks that they will be criticized for any loan where the borrower takes out any cash, regardless of the underlying fundamentals or collateral. This is nonsensical.

I understand that real estate is depressed, and that values are uncertain, and that tenants are moving, and all the other fundamentals.

The answer is simple: The regulators need to relax—not on every loan, but use some common sense!

I feel for all the small businesses in America that are crippled. They dont understand why their debt free building isnt worth anything for collateral on a loan, or why their receivables which have deteriorated only slightly are now not worth anything as collateral.

Here’s the simple truth from one of the “little guys” in a small business who sees the misery here in the street, and just can’t relate to our government’s plan to put more money in the system. There is plenty of money out there; someone just needs to stop sitting on it, after the regulators tell them it’s ok to lend some with solid underwriting policies.

This story has been truncated, see the whole story at: http://www.mrmissionpossible.com/blog/auto-salvage-consulting/obamas-30-billion-small-business-plan-more-money-isnt-needed/

Ron Sturgeon
5940 Eden
Ft. Worth TX 76117

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