Replies

To: Brazzmm22

This has long since gone beyond just being about mortgages. It’s about credit liquidity and keeping tens of thousands of small businesses that have nothing to do with home mortgatges from going belly up.
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That is exactly right.
Finally a voice of sanity in the sea of madness that is FR these days.

It’s about credit liquidity and keeping tens of thousands of small businesses that have nothing to do with home mortgages from going belly up.

I don't know about the credit worthiness of these purported "tens of thousands of small businesses" that will go "belly up" without this bailout plan, I do know that the local banks I deal with have plenty to loan credit worthy individuals and businesses. I have also heard bankers from other states say that this is much the same elsewhere. The Fed is still lending money to banks. Banks are still making loans. They have probably tightened up their lending practices as well they should. There might be marginal borrowers who could have gotten loans before this mess and can't now but that is not a bad thing, too many marginal borrowers is what got us into this mess. I cal BS on this whole "the sky is falling" scenario. They talk like all the banks are out of money to lend and this is just wrong and stupid. I have no fear of not being able to continue borrowing from banks. That's how they make their money and they are not going to stop just because some large reckless financial institutions gambled with the money entrusted to them and lost. If you can't borrow money it is not because there is no money to loan, it's because the lending institutions, with their tightened policies, don't consider you a good risk. It's people who don't like the tightened policies who are bitching and they want the taxpayers to flood the financial markets with money so they can go back to loose lending policies and lend the marginal borrowers some more. This, of course, is the perfect spiral that got us to where we are.

Bad financial businesses must fail. Good financial businesses will be strengthened with more business. Marginal borrowers will be out in the cold. Credit worthy borrowers will be sought out by lenders. This is all as it should be. It is not a problem it is just the reality of a rational market.

You know that the MSM would like nothing more than to pin a financial meltdown this week on the obstructionist GOP. Can we both agree on that?

If I wanted to make that case to the sheeple, I would lead every newscast with individual, face to face tales of - thriving, cash positive small businesses who can't get operating credit, home buyers with good incomes, good credit and down payments who can't get a mortgage, and runs on commercial banks possessed of conservative lending policies and strong balance sheets.

I've been looking for those stories this week, with little success.