You’ll never know if you insist on cherry-picking your sources in this manner.
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I haven’t read this paper by the former SBA head, except for a cursory glance at the summary. However it doesn’t go with your statement. Without research, I will posit that the free flowing money is exaggerated by the publicity generated by crowdfunding and the unregulated internet shylocks who are writing loans that can be 3 digit APR on short term loans. Not saying every small business is dealing with loan sharks.
I have bemoaned the decimation of the main street (local or regional) banks - due to either the competition of the Investment bankers or having to also follow the regulations / compliance applied to the bigs because of 2008 meltdown.
http://www.hbs.edu/faculty/Publication%20Files/17-042_30393d52-3c61-41cb-a78a-ebbe3e040e55.pdf
Sorry for the late response … I have to agree with Max here. Very lawyerish response, my man. You’re smart enough to put 2 and 2 together.
Why does it matter if they are leading them? That’s the point. Obviously some stuff was edited and can be taken out of context but to dismiss everything that was said seems rather irresponsible to ignore. They admitted stuff they shouldn’t have and ended up losing their jobs. Period.
When you claim that police have a bias against black people, that is exactly what you’re saying. Can’t just make blanket statements like that.
As to the article. It just says that black males and females are more likely to be touched, handcuffed, pushed etc, etc. Isn’t it possible they resist more and not that there is a bias present? Also the article shows that their is no bias with shootings so doesn’t that take away BLM’s cause?
GM caught lying
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Valid point, but local and regional banks are primarily victims of the economy of scale. Larger banks can provide funds with lower APR as their operational costs and markups are lower per each tranche, hence they offer a more competitive price to the consumer.
Of course, the consumer may bemoan the fact that his loan officer doesn’t know him by name and that the loan approval process is more formalized (more hoops) but that’s simply how it is with larger institutions. Walmart vs. mom and pop store.
As per the regulation bogeyman, I’m usually for deregulation but unfortunately that cannot be applied to the banking system, as increased capital levels and reduced leverage are good for everyone, especially the taxpayer who may usually ends up paying for failed banks.
Also, in implementing current worldwide regulation regarding capital levels and liquidity risk the US specifically excluded medium and smaller banks.
So to repeat my point, the story about a poor business client that cannot get a loan due to overzealous regulation is, well, simply put, bullshit.
Also, in case of additional deregulation the banks would rather use their funds for more profitable segments of the market than SMEs (mortgages, cough, cough, mortgages).
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I DO KNOW because I was one of the causalities. I posted the above but you are talking to someone who was in the front lines, in the trenches. Fighting Obama’s INSANE regulations…as he spit them out month after month. He and his regulatory process was a nightmare. Don’t have to cherry pick anything. This is not an unbiased intellectual exercise. I lived it and IT SUCKED!!!
I’m sorry to hear you felt that way. But your experience is anecdotal. Which is not to say it is invalid, but only that we can’t draw sweeping conclusions based on it.
Tell that to the man lying by the side of the road who was struck by the speeding drivers he was complaining about…
Look, we can all pull articles off the Internet that support our respective points of view. But, that’s just not going to happen with this particular debate. I was there I saw it, felt it and was hurt by those regulations …and taxes. And so were all of the many other small business people that I know quite well. There are plenty of statistics which argue both sides I understand that. But in this case I know what happened and it was NOT pretty.
What I hear you saying is, no amount of data could change your opinion.
You might as well argue with a rock, I could name fifty fellow contractors and at least as many of my suppliers that have had the same experiences as you.
Infact, to date not one business owner that I have talked with in any industry has had a favorable opinion of obama’s policies.
Okay I will disagree on a couple of points.
If your country is hanging its hat on small business as the largest percentage of national employment, there needs to be someone to actually lend money to them. I am not making a plea for smalls to not use slack due diligence in lending. Having ten branches of Institutional Banks in a small community does not increase the deposits pie by even one crumb.
Yet now the money supply for the community is diverted to Wall St to manipulate the equities market and worse - to create bogus financial instruments like CDOs of 2007. Since the regulators failed on their watch, what else could happen other than bailouts, money printing, Fed buying both equities and US debt.
Post a bit disjointed, but man I gotta go watch some football:slight_smile:
I’m not advocating a position, I’m telling you how the system works. Banks as a rule don’t like lending to small businesses. Collateral can be questionable, risk is significant and there are bigger profits in other market segments.
So ironically, at the first signs of a recession/crisis lending to small businesses is cut as they’re highly sensitive to such negative developments. Then the government (it applies everywhere) freaks out and tries either to cajole or arm-twist the banks to continue lending to small businesses.
Also, it’s not about deposits anymore. It’s about loans.
The issue is not whether any individual business owner had a “favorable opinion” of additional regulations that were put into place. (I would be shocked if they did–who likes being told what to do?) The issue is whether the regulations on balance improve the economic status of the country. And this is not the sort of thing that one, or even fifty, individual small-business owner(s) could possibly discern from their limited vantage point.
Sincerely,
A Rock
Imagine how much money would be available to loan to small businesses had the treasury not been run dry by all these wars.
That’s what I was alluding to earlier here
You’re barking up the wrong tree Zeb.
This reminds me of when Bismark was telling Jewbacca and TheThirdRuffian about the middle east.
In the fab shop I worked in the past couple of years we built a specialized product for niche industry. Most customers were small mom&pop artisan type businesses. My employer, in order to get work and money flowing through the customer base, started financing- or basically just temporarily eating the cost of the work, in order to be able to do the work at all. Banks were definitely not financing the smaller businesses.
Fractional banking demands deposits, no?
Why else would BOA et al come to BF Texas and slap up a branch? They dont have lenders in house.
Think ill research loan default rates between bank sizes for my own edification.
This is not about argumentation skills and presenting data which can be countered by other data. That’s what we do when none of us has felt the hard cold steel of the sword. When I have verifiable proof. Living breathing proof, not just from me, but the many others that I am in business clubs with and others that I have known for many years I don’t have to search the Internet for evidence.
I respect your intellect and your desire to get your point across. But not this time. You would be trying to convince someone who spent 8 years in a German prisoner of war camp during WWII that the Nazi’s were actually a great group of fella’s
Obama was a catastrophe for small business in so many ways - and we ALL felt it!
And I bet your boss really liked the Consumer Financial Protection Bureau. An agency that Obama created all on his own because there JUST WASN’T ENOUGH GOVERNMENT OVERSIGHT already.
My Gosh I am so happy that walking destroyer of small business is leaving the White House in just 10 more days. So far I have 96 people that are coming to my Good Riddance Obama party.