I’m not an economist. So take my advice with a grain of salt. Or two.
But hold the pepper. I’m not the only non-economist. Our president isn’t one, either.
Sure, he has economists on his staff, but I’ve more than just begun to doubt their wisdom.
Take his latest advice to banks: “Go back and take a third and fourth look” at operations … and “explore every responsible way” to put their money in the hands of small and medium-sized businesses with current loan applications.
We can all agree it’d be nice to get rolling like we were before the bust.
But I bet bankers are trying to learn something from the bust, something about booms. They have every reason to be super-cautious. What if the current situation remains a house of cards, one that could come a‑crashin’ at any moment? Lending money out now, in questionable cases, would be a horrid waste of capital.
I know that presidents are now cheerleaders for prosperity. One of their jobs, in the modern interventionist economy, is to pretend that prosperity is always right around the corner. Even if it isn’t.
But bankers have a different job. That job is to not lose money. And if they are now afraid tht in making a loan they might not get their money back, no amount of “advice” from our alleged economist-in-chief should change their minds. It’s called “fiduciary responsibility.”
This is Common Sense. I’m Paul Jacob.
6 replies on “Economist-in-Chief”
Some people have this irrational hero worship of the guy that is destroying our economy. While these people may or may not know who their representative or two senators in DC are, they LOVE Obama.
It occurs to me that you might as well ask people who their favorite entertainers (actors, singers, comedians, etc) are, which will take you straight to Obama in many cases. Sheep!
applies equally to insurance companies. Obamacare will destroy private health insurance.
Read Ron Paul’s book “End The FED” if you really want to find out what is behind the “Boom Bust Cycle>”
The 0bammunist is sending out all of his trolls to proclaim how great the economy is becoming. “We’re Crashing Slower!”
Think the economy has been bad so far? Just wait until the Bush tax cuts expire. And if the RATgress passes either their “health” “care” or their cap-n-plunder bill, then the Great Depression will look like Disneyland.
I wonder what makes Obama’s “economists” think that there is a “solution” in forcing banks to lend to small businesses ?
First of all, what makes them think that small businesses, in any significant numbers, would be willing to take on debt at this time?
Of the dozens of small business owners I know, not one is contemplating expansion any time soon. Not while the business environment is so hostile with potential of getting worse.
It’s not only availability of credit, it’s the dark clouds and high cost of complying with endless bureaucratic regulations, frivolous lawsuit potential, and, of course, unaffordable taxes.
Egon Martinovsky has bamboozled/scammed banks and other personal creditors in Missouri, Florida and Brazil for the last 25 or so years. Anybody in any sort of lending capacity should run fast and far from this scoundrel.