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Originally Posted by whell
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This synchs pretty well with the feedback I get from many of my clients, who are "SME's". Some of them are seeing market opportunities where they could expand and increase revenue (and add employment), but can't get the working capital from banks that they used to be able to get. To get a line of credit in the current market is more difficult than it has ever been for most of them.
The banks will suggest that the tightening of federal loan requirements makes it more difficult to lend, and of course recent history is likely making banks more risk averse. Banks are, interestingly enough, fueling government spending by buying bonds, since they have the excess liquidity.
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Given the lingering 2008 crisis and the current uncertainty engendered by the Obama administration, I can understand their reluctance to lend.
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Also, if the stimulus was meant to provide equity to grease the skids in the employment sector, it either has yet to arrive, or it hasn't worked.
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Well, obviously the government stimulus just wasn't large enough—much more is needed. Just ask Krugman.
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Is this set to be a return of the Carter economy, complete with Stagflation and malaise?
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Yes, I've already let my hair grow long and I am considering returning to Cal. All we need is for Obama to don a sweater and have a fireside about thermostats.