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To: Rangle who wrote (41087)	10/9/2009 7:02:31 AM
From: Bucky Katt	Read Replies (1) \| Respond to of 48465

Of note, more craziness> Manufacturers will tell Congress today that a lack of available credit threatens to stifle a U.S. recovery, as the Obama administration considers a proposal for loan guarantees. “As we see business increase, companies are having difficulty tapping into credit lines,” Rob Kiener, director of membership for the Precision Machined Products Association, which represents more than 500 factory owners, said in an interview. “Without credit, it becomes very, very difficult to compete.” Kiener and other representatives of manufacturers are scheduled to testify today to an Economic Policy Subcommittee of the Senate Banking Committee about how manufacturers lack credit even as the government scales back emergency programs aimed at resolving the worst financial crisis since the Great Depression. A survey by a related group, the Precision Metalforming Association, found that two-thirds of the companies say that credit is a problem, with a third of respondents calling the issue a “serious” difficulty. The administration’s chief manufacturing policy maker, Ron Bloom, hasn’t provided encouragement that the administration will adopt a proposal by manufacturers that the government guarantee $10 billion in loans in order to spur banks into lending. The guarantee was proposed in August by the Commerce Department’s Manufacturing Council, an outside advisory group. ‘The Whole Pyramid’ The government bailed out General Motors Corp. because “if GM falls, the whole pyramid falls down with it,” Bloom, Obama’s manufacturing adviser, told the council on Oct. 1. “The economic reality of the situation is that GM failing has more impact” than would smaller suppliers, he said. “What I heard Bloom saying was that the administration doesn’t want to get into trouble any further with another financial bailout,” said James McGregor, president of Morgal Machine Tool in Springfield, Ohio, and a member of the council that drafted the proposal. Company difficulties in getting credit could undermine the nascent economic recovery in the U.S., and lead companies to seek foreign suppliers, the company representatives say. “A lack of access to capital to fill these job orders will cause disruption in the supply chain, risk our national and economic security, and Americans will lose the opportunity to sustain and create jobs to overseas competitors,” Kiener will say tomorrow, according to his prepared testimony. bloomberg.com