Bernanke urges banks to lend to small businesses

This may sound like great news to some, but is it?
Is it wise to take a loan?
Not now.
The goal now is to eliminate the middle class. Through the health care bill, new climate bill and various other obligations to put financial burden on small and mid size businesses, nothing will run the way it used to.
In fact, this is just another way to ensure that the seizing of small businesses will happen legally.

If you own a small business, a loan will likely take it away from you. If you want to survive, be debt free first.

The economy will go down further. If you owe more than you have, you will be amongst those who cannot repay their debt and wind up working for someone else anyways.

Pushing down the middle class is the agenda. Without a strong middle class, there is no free economy.
It’s those who own and those who work for them.

Don’t be fooled by this carrot. Survive with what you have. Or sell your business and get out of Dodge.

Extending and increasing credit to sound small businesses “is crucial to our economic recovery,” Federal Reserve Chairman Ben Bernanke said this morning.

The issue “should be front and center among our current policy challenges,” Bernanke said at a Fed-sponsored conference on small-business financing.

“To support the recovery, we need to find ways to ensure that credit-worthy borrowers have access to needed loans,” Bernanke added.

New ways must be found to ensure the access of loans to creditworthy borrowers, the Fed chief said, noting that banks have struggled with the declining value of real estate and other collateral they use to secure their loans.

“The formation and growth of small businesses depends critically on access to credit. Unfortunately, those businesses report that credit conditions remain very difficult,” he said. Bernanke pointed to data showing that outstanding loans to small businesses have declined to less than $670 billion in the first quarter of 2010 from about $710 billion in the second quarter of 2008.

“Our message is clear: Consistent with maintaining appropriately prudent standards, lenders should do all they can to meet the needs of creditworthy borrowers.”

Small businesses make up about 60% of hiring in the U.S. The jobless rate was 9.5% in June, the Labor Department reported earlier this month.

Bernanke urges banks to lend to small businesses

Posted by on Jul 12th, 2010 and filed under Economy. You can follow any responses to this entry through the RSS 2.0. You can leave a response by filling following comment form or trackback to this entry from your site

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