When I first heard this, I thought... well if you're going to spend all this money, that's a better place to put it than into the local highway. So I was actually starting to think things might turn around. I thought YAY!!! (*Small businesses have accounted for about 70% of the new jobs created over the past decade)
but wait... "Credit Elsewhere"?? What does that mean?
Psh... my hopes raised far too soon. I read more into it and found out that it looks a little bit like the mortgage crisis all over again. The Government wants to give out loans to those who can't get loans otherwise. I don't quite know how I feel about that. Have we not already gone over this? IT DID NOT WORK LAST TIME. I sure hope it's not what it looks like.
*Jonathan Weisman of the WSJ agrees with me. (hahaha, ok so I agree with him):
"Government watchdogs fear the potential for another debacle, similar to what happened in the mortgage crisis, in which poorly documented loans were granted by mortgage brokers, then shuffled off to banks and hedge funds as securities."
PS. when the GOA is nervous about it... shouldn't we be too?
PS. when the GOA is nervous about it... shouldn't we be too?
*http://online.wsj.com/article/SB123716082464735499.html
1 comments:
You should read "Fooling Some of the People all of the Time" by David Einhorn. Its a true story about a Company that works with the SBA to get loans for people. It will make your blood boil. The SBA is incentivized to make as many loans as possible. The problem, some of these loans never get repaid. No one follows up with those, because as I said before, they get praise for the more loans they give.
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