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After his 10-day vacation and stop yesterday in New Orleans, President Obama kicked off his first day back at the White House with a call for Senate Republicans to "drop the blockade" on passing a bill intended to increase lending and to reduce capital gains taxes for small businesses.
The bill has floundered in the Senate since a Republican filibuster in late July, due to objections over a $30 billion government-funded lending pool -- a part of the bill that the White House proposed to Congress in early May.
"This bill has been held up by a partisan minority that won't even allow it to go to a vote," Obama said.
He added that passing the bill should be Congress's "first order of business" when it returns from recess in September, adding that he would be addressing the proposals in the bill in the days and weeks to come.
"Just this morning, a story showed that small businesses have put hiring and expanding on hold while waiting for the Senate to act on this bill," Obama said, likely referring to a USA Today article on businesses in holding patterns. "Simply put, holding this bill hostage is directly detrimental to our economic growth."
Republicans pre-butted the president's speech, as the Republican National Committee held a conference call with Rep. Paul Ryan (R-WI) and former Congressional Budget Office director Douglas Holtz-Eakin, who assailed the Obama administration and Congress for implementing what they called failed economic policies.
While he did not directly refer to the small business bill, Ryan criticized what he called a "fiscal explosion," citing programs like the economic stimulus plan, health care reform, and financial regulation that he said drove up the nation's debt without creating jobs.
"The Keynesian experiment of more spending has failed to produce jobs," Ryan said, referring to economist John Maynard Keynes' theory of macro-economic stabilization through government intervention.
Both speakers offered, in broad terms, their own recommendations for economic recovery. Holtz-Eakin said growth needs to come through private investment and international trade, while Ryan reiterated his desire to restructure government spending, first and foremost through its entitlement programs.
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Here’s one those nasty little “unintended consequences” that pop up out of lefty liberal programs on a regular basis. Today’s WSJ has an article about how Barry’s ClunkerCare HCR is forcing publicly owned hospitals out of business by being sold or being closed. These hospitals are generally the last resort for care of the near-poor who don’t qualify for Medicaid, and the uninsured. (Remember, even under ClunkerCare, there will still be many near-poor and uninsured people.)
Local govts running hospitals are, by definition, inefficient and costly. Not only are they run inefficiently by bureaucrats, they are subject to high union labor costs and absurdly expensive benefits. They are also mostly one of a kind operations and don’t have the advantages of the buying power and insurance reimbursement negotiating power of the chain hospitals (for-profit or not-for-profit). They know they can’t compete in the future marketplace and their taxpayers can’t afford to subsidize their inefficiency, so they are getting out of the hospital business.
Gee, I wonder where their near-poor, uninsured patients will go now??
Wanna bet the lefty liberals didn’t see this one coming??
Joe,
What year is it that the HCR takes effect? So hospitals are going out of business now. Somehow that sounds like there is something missing from your data … FACTS.
Like: “Local governments have less tax revenue coming in.”
http://blogs.wsj.com/health/2010/08/30/public-hospitals-poorly-equipped-to-survive-are-being-sold/?KEYWORDS=Public+hospitals
Dennis, what part of "and their taxpayers can’t afford to subsidize their inefficiency," did you not understand??
"The bill has floundered in the Senate since a Republican filibuster in late July, due to objections over a $30 billion government-funded lending pool -- a part of the bill that the White House proposed to Congress in early May."
NOTE THE KEY WORDS ".......a part of the bill that the White House proposed." Has Barack Obama yet to realize that it is the responsibility of the House and the Senate to pass legislation and not the President ????? Barack Obama is power hungry and he wants everyone to follow HIS wishes.....while not allowing our elected officials to do THEIR job.
Mr. President, the House and Senate PASS the laws.........and it is your duty to see the laws of our country are carried out. You can start by going down to Arizona and enforcing EXISTING IMMIGRATION LAW !!!
What's that ? You don't want to ?? Well, I'm sorry Mr. President........that is the way our Constitution was drawn up.........it's called SEPARATION OF POWERS, Mr. President. It's specifically designed to control power-hungry idealists like yourself from trampling all over the Constitution, creating all sorts of federal government power grabs along the way !!
Joe, Dennis wasn't the one who said "Barry’s ClunkerCare HCR is forcing publicly owned hospitals out of business". You said it, you own it. Defend that statement if you can.
To quote my favorite line from the movie Stripes, "Relax, Francis!"
The President can propose all the legislation he wishes...he just can not introduce legislation directly into Congress.
Perhaps you're familiar with an annual speech that the President delivers in which, among other things, he delivers his legislative agenda for the year. We call it The State Of The Union address and The Constitution requires such a speech.
Don't take my word for it...
Easy there Jim! Obama didn't hold a gun to Congress' head or anything. He is merely using his rather public position to bring attention to a bill and, yes, score political points by attempting to paint the opposition as haters of small business.
The bill hasn't passed because republicans are trying to seem fiscally conservative by rallying against a bill that is less than a drop in the bucket. That bucket may be nearing capacity, but arguing one tenth of one percent of the deficit on a bill designed to provide liquidity to small businesses hardly seems like the right battle to pick.
John, from the article:
"Local officials also predict an expensive future as new requirements—for technology, quality accounting and care coordination—start under the overhaul, which became law in March."
Argue with the WSJ if you disagree.
Lil Joe, My Wife is a Nurse & the Hospital she works at has had Her & All other Nurses taking care of on Average, 6-8 patients apiece for close to 3 years now.
When was HCR passed into law? Do you even know?
WSJ you say, is that the Rag thats owned by Rupert Murdoch, who owns NewsCorp, who also has a Sauida Businessman as the 2nd largest owner?
Only about 100,000 people were baptized at the National Mall saturday & cleansed of All Sanity.
The rest of us went on our lives as usual.
We love our sanity !
Anon Monster, you said "it's only a drop in the bucket". You know what? It's a simple fact that when you get too many "drops" the bucket overflows. Also, as somebody who used to have to carry the milk buckets from the barn, I can tell you that you can't carry more than two full buckets at one time or the milk splashes and spills all over the place.
Just simple old country examples but if you apply the underlying principles to our current situation they make a lot of sense. Many people are sensing there are too many buckets and they're getting too full!
Kings Daughter's Hospital in Ashland KY, within the last couple months Fired near 400 employees. This hospital had renovated in the last few years that included, valet parking, internet access(FREE) in the new Cardiac unit.
Now can someone splain to me, the need for valet parking at a Hospital or Internet access(that they call FREE, but we all know is added into the Hospital Stay?
Instead of FIREING the ones that made these decisions, they fired 400 Low level Employees.
Yes, Boyd County, KY is run by Conservative thinking.
DaNoid - just a slight correction. The quote from Sgt Hulka is "Lighten up, Francis". Just saw the movie again the other day so it is fresh in my mind.
This bill is 0.4% of GNP...for you libs...totally immaterial. Its a talking point to help in November! That's all! STOP watching the fancy words and realize what he is really doing!! He doesn't care at all for small business. If he did, then he'd be working on extending the Bush tax cuts...he's giving a penny and taking a dollar.
Hobie - What of the statistics showing tax cuts are the least efficient form of wealth creation available to the government? That only 2% of small business owners would be affected by an extension of the tax cuts?
Anon...almost all business owners fall in the above $250K tax brakets. You've been reading Dem talking points instead of THINKING!! And, if its that inefficient then why is obama pushing for it. You're wrong either way!
Hobie, that's less than 5% of Americans. Are you telling me that only 5% of Americans own almost all of the businesses? Less, considering that many large businesses employ multiple people in that income range?
Either your stated point is wrong or we've become such an oligarchy that no one has any hope of upward mobility...or both.
Which is it, Hobie?
Hobie - last time I looked 20-25% was not "almost all'. I wish more small business owners made more than $250,000, but, alas, they don't.
that may be true, but statistics show that only 2% of small business owners are above 250k.
And I'm not just listening to talking points. I'd like to see all of the tax cuts expire. Perhaps not this year, but very soon.
The stimulus only worked for union employees, and government employees (same thing in most cases). This bill will only help more of the same, or so-called green jobs. What about the rest of small businesses? Nothing. As a democrat, I believe the republicans are correct on their stance. Nothing this administration has done has helped the bulk of the unemployed or small businesses that don't cowtow to the spending machine. The money is following leftists only. Not all democrats are leftists and those of us that believe the administration and congress have been going in the wrong direction for nearly 4 years want the nonsense to stop.
Quit repaving roads that don't need it (as is currently being done around the country). That isn't helping anyone except unions and government. It is happening in Oregon at an alarming rate when schools and necessary services are starving.
The environmentalists have destroyed logging in Oregon because of a bird that went up in smoke during the largest forest fire in Oregon history. So why not harvest timber here again? It can be done responsibly but the leftist say no. A handful of people and a few activist judges have destroyed our economy. Those that have no stake in Oregon are continuously screwing it.
Anon Monster, you do realize that while "this is just a drop in the bucket" a whole bunch of "drops in the bucket" add up to a lot of money don't you? Thats the problem it is always just a drop in the bucket.
My bucket only holds $100, but if I spend 20 (little drop in bucket), then 39 (little drop in bucket) then 45 (little drop in bucket) uh oh I've got trouble, but why, everything I spent was "just a little drop in the bucket"
Janet,
I already agreed that the bucket is nearing capacity. And there are plenty of much larger spending bills that republicans could have taken issue with. Take the most recent war bill, another $130 billion or so. Medicare part D (I know, I know. It was years ago, but it's tough to find any bill Republicans have been positive about as of late) was $1.2 trillion over 10 years.
Again, this bill is about providing liquidity to small businesses, which would help with job creation, which would increase tax revenues. In addition, the bill is relatively small considering the other bills recently passed. Some opponents say it's too small. I think this bill is the wrong battle to pick for fiscal conservatives considering not only its size, but its aims as well.
Paul Ryan and his dope of nope roadmap baloney will devastate the economy with more GOBP failed policies and set us back a hundred years, and that's a fact Jack.
Where are the "facts?"
Did you seriously just ask that? where are the facts? I'm sure Jomama72 doesn't find your question that hard to answer. The current depression started under the trickle-down voodoo economics of the 8 years before President Obama. Those are the same policies that Paul Ryan the republican economics whiz is advocating. There's the facts!!
Well, this guy is better at math than most of us. http://www.nytimes.com/2010/08/06/opinion/06krugman.html?_r=4&src=twt&twt=NytimesKrugman
Unemployment under Bush, with a Republican Congress, was around 5%...near perfect! He just got stuck which the housing bubble burst caused by Fannie and Freddie run by Democrates. Democrats since Clinton have been inflating this bubble. Low taxes and low gov't spending works!! Redistribution of wealth is a drag on the economy and for every public sector job the gov't kills two private sector jobs.
Which should I show you, Hobie? That the pre-recession unemployment peak under GW Bush was almost 6% and rose steadily under a Republican Congress? http://lh4.ggpht.com/_crR-DCGb89Y/SrVn4F2-ItI/AAAAAAAAAL0/N1b_1KsEIak/s720/Unemployment%20Rate%201948%20Jan%20-%202009%20Aug%20copy.jpg
That Fannie and Freddie didn't cause the crisis? http://seekingalpha.com/article/98533-fannie-and-freddie-did-not-cause-this-crisis
That Republican tax cuts without offsets in spending are the actual cause of our ballooning national debt? http://zfacts.com/p/318.html
That the Bush tax cuts were geared to benefit the wealthy disproportionately? http://blog.reidreport.com/2010/08/who-benefits-from-the-bush-tax-cuts/
That your statement about 1 government jobs destroying 2 private sector jobs is laughable? http://www.google.com/url?sa=t&source=web&cd=1&ved=0CBUQFjAA&url=http%3A%2F%2Fwww.usatoday.com%2Fmoney%2Feconomy%2F2010-08-30-stimulus30_CV_N.htm&ei=DBp8TIivAcHflgeXo_3wCg&usg=AFQjCNEd-3M6a0BNLxNE5_1doHFKmDqMlg
Oh what the heck. Why no all of them?
Oh John...so little time and so many errors in your thinking.
From your Fannie article..."I think the most important factors are agency problems, the mis-pricing of risk, and the failure of securitization to distribute risks across the financial system." Companies like Countrywide made loans to people who could not afford them. These loans were purchased by Fannie and Freddie, insured by AIG and sold to brokerage houses who sold portions of the payment stream to banks and other industries. What allowed mis-pricing of risk and spreading of the bad loans? Fannie and Freddie purchased all the loans they could get their hands on. They did not evaluate them for risk. The bundled them and sold them. This removed the person making the loan from the person paying the loan and therefore transferred risk to banks and other businesses. Democrats ran Freddie / Fannie and Frank / Dodd hid what they were doing.
Your article on the stimulus was a joke. Anyone willing to pay $200,000 per job is nuts. I don't argue that it saved jobs but at what cost?!?!? Short term jobs at that. In a year we'll be left with a person unemployed and a debt that needs to be paid off.
Wish I could continue but time to make dinner. Throwing a bunch of articles out there makes you seem like you know what you are talking about....but you really should read them CAREFULLY!!
Fannie and Freddie had only 20% of the subprime market and as the crisis approached their market share actually declined. Who tied the bankers' hands and forced them to make the rest of those loans? We're in agreement that players in the market securitized the risk and moved it on without penalty to themselves. Whose fault is that? They merely took advantage of the deregulated market.
What of the infrastructure that's being created as a result of these jobs? Is that nuts? Is that worthless?
Hobie, I can't help it that you're dismissive of facts. They have a Liberal bias.
Hobie - the market, from irresponsible consumers to the end-users of mortgage backed securities (whose demand for such securities created ever more and more irresponsible loans and securitizations) is to blame for the bubble and subsequent crash. Arguing that Fannie and Freddie, Dodd/Frank were simply being greedy is a gross oversimplification.
A significant portion of the stimulus was comprised of tax cuts, which few believe actually creates jobs in most cases. Taking the entirety of the stimulus and dividing that by the number of jobs saved is not the right way to calculate the amount spent per job.
with billions of TARP money left, why not just use it for this project if it will do so much good, and don t drive the country into more debt.
Andy M - MA
"Did you seriously just ask that? where are the facts? I'm sure Jomama72 doesn't find your question that hard to answer. The current depression started under the trickle-down voodoo economics of the 8 years before President Obama. Those are the same policies that Paul Ryan the republican economics whiz is advocating. There's the facts!!"
Easy to talk, harder to walk. Prove it.
He's spent over $1.2 Trillion on stimulus and two different "jobs bills," and he's blaming republicans for being "obstructionists?" I wonder if Obama even believes his own lies anymore...
Yes, he does.
amf1211
He's spent over $1.2 Trillion on stimulus and two different "jobs bills," and he's blaming republicans for being "obstructionists?" I wonder if Obama even believes his own lies anymore...
Hay if you were such a well informerd republican you would know that they(republicans) came out a few weeks ago and said they are going to obstruct everything the dem put fourth. No lies here, this is about another republican supported not reading up on there won party. what a shame. kind of like sarah not knowing the bush doctorate during the election.
hahahahahahahahaha! And what ever happened to those shovel ready jobs? has anyone other than Union positions been improved upon?
As long as we're talking about the stimulus, yes it worked. http://www.economy.com/mark-zandi/documents/End-of-Great-Recession.pdf?L=HPADV2&C=ZANDIBLINDER&P=LEARNMORE
Now that we've established the Democratic economic plan is more effective than the GOP "cut taxes and wait for the economy to recover" plan it's more time for Republicans to quit obstructing progress than ever.
Of course Mr Zandi also supports making the Bush tax cuts permenant for the lower 98% and proposes a two year extension for the top 2%. I guess he does think that tax cuts work.
http://www.nytimes.com/2010/08/15/opinion/15zandi.html
John B:
It worked so well we should have another one?
It has been in effect for 10 years. When is it going to start working?
Yes, Mr. Zandi does think that, but Republicans are pushing a narrative that deficits are about to destroy the economy. How shall we pay for the $700B tax break you're advocating for the top 2%?
You're for the tax cut, you're for deficit reduction, or you have a plan to give us both. Which is it?
Actually I'm for rolling back all of the tax cuts and going with the Wyden-Gregg tax plan
There is no upcoming tax cut. The rates were cut years ago. Any resumption of previous higher rates is a tax increase, no matter who it's on.
Pay for it with reduced spending. I've always advocated that and I've always advocated spreading the pain to everyone, including me. The largest programs can't be spared, because they represent the sources of the greatest savings and are the source of our greatest fiscal threats. Reduce the scope of Social Security, Medicare, the Military, Federal Employees across the board.
If you want to increase taxes, increase the payroll taxes dedicated to Social Security and Medicare. Make everyone pay it, raise the limit on which the more well-to-do pay it (do you increase their benefit when you do this?). Since this would be a 6.2% tax increase on their higher income, leave the current tax rates in place.
With the payroll tax increase, also reduce spending across the board on all federal programs. Eliminate the federal department of education because it is a useless, very expensive bureaucratic appendage to the nation's education system.
"Any resumption of previous higher rates is a tax increase, no matter who it's on."
So the Republicans built a tax cut into the system years ago? Those dastardly no-goods!
OF COURSE they built it in...it was the only way to produce a budget projection that didn't show ruinous explosion in the deficit after 2010.
Thanks for facing the truth Richard, Republicans sold us a shell game from the beginning.
John B, Des Moines, IA
"As long as we're talking about the stimulus, yes it worked. http://www.economy.com/mark-zandi/documents/End-of-Great-Recession.pdf?L=HPADV2&C=ZANDIBLINDER&P=LEARNMORE"
Worked for who? You? The link you presented is a farce. Jobs are down, the recovery no where in site. Maybe if you are a unionized hack that can't make it without more hacks holding up your socks, but the heart of America is suffering because they don't get special privileges.
One link saying all is peaches and cream from a leftist source doesn't make a fact.
We were hemorraging 750,000 jobs/mo when Obama was inaugurated, now we're making at least some...not enough but it's a step forward. GDP was SHRINKING at a scary pace, now it's growing...not enough but it's a step forward. The entire banking system was on the verge of collapse worldwide, now it's stable and making profit. The American auto industry was on the brink of extinction, now those companies are profitable and paying back their loans.
Those are facts. You can pour cold water on it all you want and root for the failure of the American economy because it brings defeat to a political party. Is that where you want to be? The recovery is weak because Republicans prevented a fully effective stimulus and because lack of regulation caused the biggest bubble economy we've seen since the Great Depression. We don't come back from that very quickly--but we can be back into it pretty fast if we keep doing what caused the collapse in the first place.
Make sure you participate and call your senator to vote yes on this bill to help the President so small business can move forward again. Also make sure to vote in November and give rides to other progressives who will vote and keep the majority in Democratic hands. By being active and donating time and/or money we will keep our country moving forward regardless of how loud the Republicans whine.
Democrats have had the majority for four years now, and look what they've done. No thanks.
President Obama and Democrats in Congress should be relieved to know that businesses will begin expanding and spending the record amounts of cash they're sitting on immediately following the midterm elections...
It'll actually make some sense then.
So you have some inside information mixedupone? Businesses are sitting on record amounts of cash but just waiting for a Republican Congress to spend it? Something tells me that you are probably not far off.
Business owners, corporation boards of directors, all are waiting for Republicans to lift the thought of any sort of regulation or oversight so we can go back to the years of can't trust the numbers capitalism. Back to the years when we can spend 2 trillion dollars on a war and we can't account for a third of it?
Like I said a few days ago mixed, 2014 - the end of the U.S. domination as the leading world economic power. Then it will be Canada sending troops to their border to keep people like you out.
As much as I'd like to see that, and I truly would, I highly doubt it. Business spending will moderately increase for the holiday season. Politics will have nothing to do with it.
Business is sitting on cash because they are afraid to invest it. Who knows what the healthcare bill will cost employers? Who knows what onerous regulations obama will come up with next? We don't even know what the tax rate will be next year. Uncertaintly kills business.
Business is sitting on cash because of a lack of demand. Potential (and potentially nebulous) regulation has little to do with it.
If businesses want to know what their health plan will cost why not ask their insurance provider as they've always done?
There is no reason for the government (taxpayers) to fund a $30 billion lending pool. There is plenty of money to lend and as soon as loan demand from credit worthy borrowers increases, because they see genuine opportunities, lending will increase.
Opposition to this feature is both principled and correct. If it holds up other aspects of the bill, so be it and congratulations to the Republicans for recognizing it for just another fall campaign teaser.
More no from the party of no. No leadership, no legislation, and no to anything Obama proposes.
What ONE major piece of legislation have the Republicans written and passed in the last ten years that benefit all Americans??
Two tax cuts that benefited every tax paying american and even those who didn't pay taxes. If you don't believe me, just wait until Jan. 1, 2011 when they all expire.
BTW, Obama was supposed to be this great leader and builder of consensus and now he blames a mear 41 senators for "blocking" his agenda. I guess he's not the leader you all made him out to be...
I said "that benefited all Americans." The tax cuts allowed millionaires and billionaires like Warren Buffet to pay taxes at the 11% rate while everyone else on salaries got shafted.
If that bill was your shining accomplishment it speaks volumes about your failed party
amf, they won't "all" expire unless Republicans follow through on their threat to hold 98% of Americans hostage to secure a $700B windfall for the top 2%.
I am a bookkeeper who does payroll for small businesses. The thing that I never understood was how, if Bush cut taxes for the middle class, why was it that the withholding tax tables did not change from year to year during the last few years of the Clinton administration, but as soon as Bush cut taxes, withholding increased for middle income wages? I heard there were supposed to be tax cuts for everyone, but more was being withheld from the checks I was processing. That does not look like a tax cut to me. By the way, in February 2009, tax withholding decreased on middle income wages. That does look to me like a tax cut. You can say what you want about taxes, but unless I see it in the payrolls I process, I am not convinced.
Novermber is coming and the American people will Vote out many Liberals/democrats from Congress. they understand and are Tried of the Way that President Obama does nothing but blame Republcians. it is his only Answer to the problems this country is facing.
The american people are Tried of the Blame Game President Obama. it is because of you President Obama that the Democrats will Most likely lose the House of Representatives and Possibly the Senate.. It is time to Start acting like the President Mr OBAMA. and stop acting like a 5 year old and Blaming someone else..
We are tired of it President Obama. Come novermber we the American people will Stop the Madness that you have started. and come November of 2012.. We wil Vote you out of the White House..
Steve,
In his bid for re-election in 1984 President Reagan was still blaming Jimmy Carter for the economy.
And the 1929 crash is STILL Hoover’s fault !!!! That economic crisis only lasted 12 years.
AGain Dennis,
The american people are Tired of the Democrats and liberals. The american People are Tired of Obama..
Gee, Steve, when did you suddenly become "the american people"[sic]? We get it, Steve, you do not like President Obama, you do not like Democrats but that does not mean that you know what every American thinks.
Here is the proof: I am not tired of the Democrats and liberals, or President Obama.
Oops, there goes your theory, Steve.
When November rolls around Mattew, we will see just how Tired the American people are the Democrats and Liberals. and it will be because of Obama. Simple.. I know you can't handle the Truth. but you are gonna have to Face it come november.. Sorry you wish to stay on a Sinking Ship.,..
Senate republicans demand help for small businesses--yet deny the tax cuts and loans intended to help small business by voting NO. Charles Grassley's newsletter states he wants to help small businesses with tax breaks in order to stimulate job growth--yet Sen Grassley voted NO to do just what he claims to support.
Anyone should be able to figure out that the Senate republicans are voting NO for one reason--if the economy and job growth are slow, it means voters might pick them in November. So much for Country First.
The $30 billion taxpayer funded lending pool isn't necessary and you won't see Obama proposing only a capital gains tax for small businesses.
Republicans would probably support the capital gains tax cut. They don't support another $30 billion taxpayer funded slush fund when there is plenty of money to lend to credit worthy businesses, should they see sufficient opportunities to make borrowing a good idea.
They are correct to oppose this unnecessary $30 billion taxpayer funded lending pool.
As for voting NO in order to keep the economy and job growth slow, I think Americans are far more concerned about why the economy is still slow, maybe even slower than we thought, after the "stimulus".
Give us a bill with only the small business capital gains cut. That might get a 'yes' vote from Republicans. Any guesses how the majority of Democrats would vote on that? 'No' possibly?
Well Richard how do you explain the fact that credit worthy businesses can not get a loan? There are huge number of business that are showing a profit and have been throughout these tough times but even they are refused credit. You know its true if you have been paying attention.
We know the biggest contributor to GDP is the consumer. The single biggest reason for slow growth is that people are not spending. But so many people are out of work and even more have had their hours cut (I'm one and my wife is another) that there is no extra money to spend.
What are the republicans plans, if they gain control of Congress to get more people back to work? Since Obama has taken office and the unemployment rate has increased, I've not heard one constructive idea from your side as to how to fix it. Whats yours?
Oh, Frank. Tax cuts for the wealthy are somehow, magically, instantly going to create jobs! Haven't you been listening?
Frank:
Credit worthy businesses can get loans. Banks with money to lend have the alternative of employing assets at less than 1% interest rate. Do you think they would not lend money at 5 or 6% to credit worthy businesses that request it and can demonstrate that they can repay it?
I pay a lot of attention to this, Frank.
Loan DEMAND is down. It has nothing to do with whether money is available or not.
Let's say you are a small business that employs 10 people. You are getting along fine right now, maybe even keeping a person on the payroll in anticipation of the eventual comeback. Your revenues currently cover your expenses and generate a small profit, but your revenues/sales are not increasing. It's not because you couldn't produce more, but because, well, your revenues/sales are not increasing.
Is this a good time to seek a loan? Or even to spend reserves on hiring, if you are one of those businesses fortunate to have "hoarded" some cash?
It's not because the money is not out there. Creating a $30 billion taxpayer funded pool of lending is a bad idea because it is unnecessary.
Richard, Washington State
Loan DEMAND is down. It has nothing to do with whether money is available or not.
Comments made July 12, 2010 by Bernanke on small business lending during a forum at central bank.
Some entrepreneurs have resorted to borrowing on their personal credit cards or from their retirement accounts, he noted.Banks, for their part, say that they have not so much tightened credit as returned to more traditional underwriting standards after being too lax, Mr. Bernanke acknowledged.
“But, though some lenders said they were emphasizing cash flow and relying less on collateral values in evaluating creditworthiness,” Mr. Bernanke said, “it seems clear that some creditworthy businesses — including some whose collateral has lost value but whose cash flows remain strong — have had difficulty obtaining the credit that they need to expand, and in some cases, even to continue operating.”
Maybe in your state things are different. The comments made Bernanke in the article can be verified several ways. In too many cases, banks are denying credit for unknown reasons.
how about we stop big business from stealing the 60 to 80 billion per year from medicare? the republican scott in florida was forced to pay 1.6 billion for his company stealing from medicare. why is no one doing anything about this instead of talking about it. everyone is talking about how bad our government is but i dont hear any politician calling for big business to clean up their act.
Small businesses want to know the specifics as to the costs associated with the Health Care legislation, tax increases and energy reform. Until Obama and his cronies do that, the jobs/unemployment situation will not rebound.
Well Dahly, energy reform has been shelved for now, this bill is an attempt to reduce their capital gains taxes, and if they want to know how much their health insurance will cost they should call their provider, same as always. And decisions to add employees are based on demand.
our military budget is 700 billion per year and we waste tens of billions in irag and afganistan rebuilding them. big business ,haliburton, has been making huge bucks off these wars all of them deep in republican pockets. so a few poor civilians and soldiers die. it is patriotic for these poor bastards to die for their country and the right for the rich to get even fatter. i dont here any politicians calling for cutting back or even stopping the money trough for the rich.
There is a saying that if you have no constructive proposal to the one being offered don't make it to hear your voice heard. My major is economics and everyone knows from Joseph in ancient Egypt to would of global ramification that in times of economics crisis a combination of fiscal and monetary policies are needed to fix an economy. making general statements like the private sector is important for job creation and internatinal trade is important is meaingless if not back by specifics instruments.
The All-Drama Obama Theater was to be in the White House, with his cabinet.....ended with Obie in the Rose Garden without his advisors. Why, is Obie wanting to be seen clear of his cronies? Obie says cutting taxes good - but still villifys Bush programs to do the same thing.
Will the $30B for small business have any attachments as to providing health care for their workers? any other specific criteria that hampers business growth?
So is this the Summer of Recovery progressives?
Ah, can't wait for the mid-terms and the ouster of members of the Entitlement Party from Congress.
Well, well, the cat is finally out of the bag - the republicans don't care if small businesses fail, never have, never will. if I owned a small business or worked for one that would be the final nail in the coffin - you can bet I'd never vote for anyone associated or even friends with the R's after this. I'll be sure my friends who own small busnesses understand who wants them bankrupt - the republicans, that's who.
The money for these small businesses will actually help pay down the national debt (hiring more people who will begin to pay taxes again) and stimulate the economy, two things I guess the republicans don't care about anymore unless they think they can get credit for it and get their 15 minutes of fame over it. Looks like Melman is not the only republican outed - all the rest who claim to be for small businesses can now be proven to be frauds.
Bottom line (and it is all about the bottom line, isn't it): Hiring employees and paying them with loan money is a very, very bad and unsound idea in the current economy. Buying hardware for the business is another matter but hiring because greater debt is incurred for the use of payroll is a very bad idea. What happens when the debt must be paid back? Where does the money come from, then? When the funds run out the employees are the first thing to go. It would only be a stop-gap measure like the previous "stimulus" packages that failed to spur the economy as much as touted.
And, if I have learned anything over the years, it is that neither incumbant Republicans nor Democrats really care about the little people as much as they act and posture for television and votes. It is time for America to vote out the lot of them and start over with Independents! The only way for both Republicans and Democrats to learn that America really wants change is for all Republican and Democrat politicians to stand in the unemployment lines for a few years.
Whats finally out of the Bag is that in November the American people will Remove the Liberals from the Us Congress..because of the Failed Policys of the Obama Administration. it is Obama's Fault the the Republicans will Gain control of the House. and possible the Senate.. it is every Politicans fault the the Economy is in the State that it is. But is Obamas fault for the failed programs that he has proposed that have done Absolutely NOTHING to improve it... thats what is out of the BAG
Lending? More LENDING??? Isn't a lot of lending and bad debts, and lots and lots of spending moneys that were not already there what partially got America and much of the rest of the world into the current economic mess? No more lending and deficit-expanding legislation!
I am glad that there is opposition to this legislation. It is about time! The other so-called "stimulus" attempts did not work as expected. What makes anyone think that adding more lending will fix the situation that gifting "stimulus" money didn't?
It is obvious that the root of the problem has not been fixed and that many still believe expanding the deficit in the name of bigger government is a good idea.
What happened to YIPO's promise to rewrite NAFTA, how about trade modifications? I know not enough camera time and at a boys in that. YIPO and his merry band of followers need to leave small businesses alone. Americans will be better off rebuilding without these elected officals meddling.
This should be pretty simple. If the repubs are objecting to that portion of the bill then take it out and make them vote on the rest of it. If they don't they can rightfully be accused of obstructionism.
Too many bills are loaded with extras and that keeps a lot of them from assing. On big bills like this one it should be a simple "here it is and vote yes or no." Both sides play politics on these bills.
Obviously, that part of the bill is something very near and dear to Obama's heart and if he's fighting that hard to have it passed, it's already suspect.
Anyway, democrats steamrolled over everyone on the health care bill and passed it, why can't they do the same with this bill? Are there maybe some democrats who are not all too happy about Obama's 30 billion baby?
"Today’s WSJ has an article about how Barry’s ClunkerCare HCR is forcing publicly owned hospitals out of business by being sold or being closed"
Wow and who owns the Wallstreet Journal?????????????????????????????????
Rupert Murdock, and News Corp
Wow and who owns FOX News????????????????????????????????????
Wow the same guy
What do you expect the WJS to say, it's a Republican paper strictly for the "Rich"
WJS cost about $450 a year by subscription
WJS day after day after day supports the Republicans
The article today in huge print
"Cash-Poor Governments Ditching Public Hospitals"
Here's what you didn't note
"Moody's Investors Service said in April that many stand alone hospitals won't have the resorces to invest in finformation technology or manage bundled payments well
Many have "Bad Credit Ratings and tight credit market cannot "Borrow" money either
Once again holding not only the American people "Hostage" they are holding Public Hospitals "Hostage" by withholding Credit
Next time get the story right and do understand who's telling the story
WJS purely a Republican Paper they spend every section on every bage "Bashing the President" and the Dems.
No Surprises Here
Did you really think that the person who owns Fox and owns WJS would be fair and balanced?
I charted Unemployment against GDP growth. You can see unemployment and GDP both rising dramatically since 2008. The GDP pop has been all spending by the government and not by consumers or small business. IMHO, that means it doesn’t matter how much money the government spends, it’s not enough to create jobs.
Here is that chart --> http://www.hiddenlevers.com/hl/u?coUizF
HiddenLevers:If you are correct it means that the Republicans left the economy in such a bad shape that even all that spending is not enough to get it back to normal. "that's bad" but the approx. three million people that are still working because of the spending, has helped keep the country from sliding into a depression, now the Repubs need to get out of the way and let them vote on this bill!!! it is funny that the ones that ran the country over the cliff now acts like they are the only ones that know how to drive!!!
The Repubs are holding up this bill keep employment low. until the elections in November.
It is President Obama not obie!
Wouldn't you agree that he should act like a president and not a union organizer? Wouldn't you agree that he should present his plan to the nation on how he will create jobs, reduce the decifit and recover the money afforded to GM.
Wouldn't you agree that he should accept ownership for the funds provided to his various stimulus programs that haven't accomplished much. Wouldn't you agree he should provide the nation an accounting on how funds were distributed, to whom and how they used those funds?
Ah President Obie, may you not destroy the country before you one term is up. Not a racial comment, just from one who is amazed by his policies.
Safecracker: wouldn't you agree he is doing much better than Bush did when the country went into a tailspin and the American workers and country lost 17 trillion dollars overnight??? and millions of people lost everything they have worked for their whole lives!!!
What part of we don't want that to happen again don't you understand???
respect has to be earned. BO is the name of choice.
We'll be sure to keep that standard in mind - your standard - the next time a Republican president is in office and the right wing is up in arms because we aren't paying him the proper respect.
since obama wants this so bad and since it is ,according to him , going to boost hiring, then simply take $30 billion of the remaining TARP money to do whatever he wants to do. no more money needed. and no more defecit than already exists. that is if that money hasnt been spent on aid to Hamas or weapons for somalia, which have been high on obamas priority list. either use TAP money or use it to pay on the national debt.
Hey Morning Joe, what you doin wit dat “gun” in your hand? Mark Foley, Larry Craig, Ted Haggard and the rest are throwing a party and want to know if they can hire those Male Stripers you guys were talking about earlier. I WAS busy getting ready for work but think you called them “The Young Guns”
LOL
According to anti-gay activists George Rekers and James Dobson from the so-called Family Research Council… The Male Model/Escort industry has a great future in Republican Party politics… lol
GOP - Gay Old Party
consciousmc.blogspot.com link to Cyber Bitch Slap
Who falls for this stuff? Conservative wackos, THAT’S WHO! How does this 2nd rate shock jock Beck, become the mouthpiece of GOD? I’m Roman Catholic, I believe in GOD AND I REFUSE to allow this great nation to be destroyed by a bunch of Glenn Beck/Sarah Palin groupies…
Normally I’d be telling Democrats, Progressives, Liberals, Independents and disgruntled Republicans, there’s only ONE issue that matters. That would be to get rid of Republican Party in the next few elections. Kick the GOP to the curb, right? But I’ve been side tracked by this maniac Glenn Beck. The thought of this mad man speaking on the steps of the Lincoln Memorial trying to associate himself with Martin Luther King Jr. is more than I can take…
“Restoring HONOR”? Are you KIDDING ME? Is that what passes for HONOR on the monkey right-wing? When are you Conservative wackos going to evolve? OK Progressives, here’s a challenge… Glenn Beck demonizes our ideological belief system on a daily basis on TV and the radio. He uses hate speech, racism, warped interpretations of the Bible… Beck revises history and passes along his severe superiority complexes, odd paranoia and religious delusions on to his cult-like following. He has made Progressive activists into targets… SO WHEN DO WE FIGHT BACK? In the next 2 elections that’s where Progressive get our JUSTICE!
Like Tip O’Neil used to say “ALL politics are LOCAL politics…” I got a challenge for Progressives… Find something to USE against Republican candidates in YOUR voting district and destroy their political careers. It easy, most Republicans are either stupid or corrupt
The Republicans gave Bush billions of dollars and millions was squandered away in Iraq. There was millions more wasted with FEMA & how much money did we give the goat herders in Afghanistan to flush out Bin Laden? It is plain to see the Republicans not even trying to do something less risky to help Americans. It's illegal what they aren't doing in office as part of a functioning government. Republican Senate that we have now in office is taking their job for granted. It's to bad we even got a non American Republican party. I hope the Tea Party cuts right into their elections. They don't want Obama in office as if he were the enemy in doing so they are not doing anything for the unemployment & have no will to. What kind of government is that? From the day Obama took office the ignorance of the Republican party came out in force. Whatever Obama does Republicans have an automatic no. There will be more changes coming in the future with a government like this. Voters see this non functioning side of politics as playing around with peoples lives and it isn't funny. There is more wrong in what the Republicans won't do then what Obama ask of them to do for the peoples sad state of the economy. If Obama was Republican they would vote yes.