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To: rich evans who wrote (391632)11/6/2010 11:11:50 AM
From: DMaA  Respond to of 794358
 
Companies won't borrow because they perceive the chance of making a return on the borrowed money, after negotiating the maze of government invented barriers, is slim. And if you do manage to make a profit they take such a large fraction of it from you it's just not worth the aggravation.



To: rich evans who wrote (391632)11/6/2010 12:35:22 PM
From: Little Joe2 Recommendations  Read Replies (1) | Respond to of 794358
 
So if I have grasped what you said. The reason the dollar is falling and commodities are rising is the perception that the money will be loaned out. However this does not appear likely.

Do you think then that the dollar will rebound and commodity prices will fall, when it becomes apparent that the banks can't or won't lend?

Is it your opinion that this was done more to shore up the bank's balance sheets than to make money available for lending?

I would have thought the government bonds were cash equivilent and would be as good as cash on the balance sheet. What am I missing?

Sorry for all the questions, but this is hard.

lj



To: rich evans who wrote (391632)11/6/2010 12:38:09 PM
From: LindyBill  Read Replies (1) | Respond to of 794358
 
you will see that the household survey which is small business, independent contractors, illegals, underthe table stuff

When 60 Minutes did a "woe is me" employment segment on Newton Iowa last week, they showed a couple of comments by local small businessmen complaining they cant get loans from the Bank. Of course they can't. They are too small to have much assets. The source of money for these kind of businesses has always been family. That is why immigrants do well with small businesses. They are used to that kind of loan situation. Our society has depersonalized away from this source.