Sometimes we get caught up in Wall St. and the unethical things going on with them. It is important that we remember that this garbage they did over the years is now hurting many wonderful people that employ a lot of other wonderful people.
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Hull’s story is a familiar one to millions of small business owners across the U.S. who rely on credit lines and loans to fund expansion or help them recover from setbacks. In a National Small Business Association (NSBA) survey released this week, 67% of business owners polled reported being affected by the credit crunch in August, up from 55% in February. Additionally, 32% reported a deterioration in the terms of available bank loans, up from 27% six months earlier.
“If there is a squeeze on banks, even if only large investment banks, the repercussions can easily flow over into commercial bank loans,” says NSBA President Todd McCracken. “Based on what history suggests, if banks have to pull back, they’ll pull from small business loans first.”
A small business cutback will have ripple effects on the larger economy - and on the jobs pool. Small businesses employ about half of all non-government employees in the U.S., according to Small Business Administration estimates.
http://www.financialarmageddon.com/2008/09/credit-crunch-f.html
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The problem we face is that “Main Street,” is going to be paying for what these miserable and greedy politicians (for votes and personal wealth) and the Banking Cartel through their agents have done to all of us.
As these companies close and lay off people, tax revenues to our cities and states that provide education, sewers, water, police, fire protection, etc. will all be hit. Our infrastructure, already ranked at “D” by the society of engineers will get worse as cities and states have to try and keep basic services going while cutting spending in other areas. That will cause even more layoffs.
Last week, here in Az. they announce suspension of highway projects for the foreseeable future due to budget shortfalls. Think of all the workers that will impact and all the companies that sell to those project companies that will suffer and how that causes another leg down in tax revenues.
These policies for the last 10 to 15 years to help low income citizens have a home and suspension of banking regulation and changes that allowed 30 to 1 leveraging and more that would fall on the backs of tax payers amounts to treason for they have sold our standard of living down the river.
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One Comment
You failed to bring the article to a conclusion and tie it into the opening statement. Let me try…
Once again, Wall Street did some garbage that put Main Street on life support. This time the garbage is in the form of worthless MBSs. The reason these MBSs are selling for 22 cents on the dollar isn’t only because there’s a housing slump. It’s because that’s all they’re worth… if that. Consider this. If these securities were worth more than 22/100, than some enterprising banker would reassemble the mortgages, restructure and sell them one-by-one for 85 cents on the dollar. But many enterprising bankers have already looked at the securities and walked away. Why? FRAUD!!! Million dollar loans were made on abandoned shacks by the railroad tracks! Treasury wants to bury this truth by buying up worthless paper and holding it until everyone forgets.
Once again, investors were fleeced. In this case, the investors were banks and now they’re insolvent - not illiquid! End of story. The garbage they’re holding is next to worthless! The insiders know this and that’s why there’s panic on the Street. Pure and simple, this was FRAUD to the tune of trillions.
Someone needs to show the public what is under the hood of these securities! Congress needs to do some real due diligence before they pony up $700 billion, and look under the paper. In the process they will illuminate why our homes dropped 30% in value. It’s not because our homes dropped in value, it’s because our loans are being treated like a million dollar shack by the tracks.
Garbage out by Wall Street, garbage in to Main Street.
Have a nice day.