Small business loans evaporate:
Eight months after President Obama began prodding the nation’s banks to increase their small business lending, the loan numbers continue to move in the opposite direction.
The 22 banks that got the most help from the Treasury’s bailout programs cut their small business loan balances by a collective $10.5 billion over the past six months, according to a government report released Monday.
They are taking our tax payer money and either hoarding it against the massive losses certain to hit in 2010, or using it to gamble on the current stock and commodities bubbles. This is what happens when you give money away – “free” money is never used as you would have wished. This is especially true if you give the money to the very same, irresponsible fools who screwed things up. If you’re not clear on this, give $100 to a teenager on the hope that he’ll buy books on mathematics and philosophy with it.
HAT TIP: Mish’s
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