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If Obama is supposedly encouraging lenders to lend to small businesses,

why does the banking system have ONE TRILLION dollars in excess reserves?

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NotPanicking

Asked by NotPanicking at 8:21 PM on Mar. 28, 2010 in Politics & Current Events

Level 51 (421,172 Credits)
Answers (7)
  • Just because you don't understand the reason, doesn't mean that the reason isn't a good one.
    Anonymous

    Answer by Anonymous at 8:23 PM on Mar. 28, 2010

  • Why not?
    Anonymous

    Answer by Anonymous at 8:23 PM on Mar. 28, 2010

  • Because they aren't doing it. We own a small business, and getting a small business loan to upgrade our equipment is like pulling gold out of someone's butthole. Yeah, it's just not happening. It's a load of b.s. Even though our business is going well, and growing, we're not making enough to make the upgrades we need to go bigger & better and hire a much-needed employee.
    Anonymous

    Answer by Anonymous at 8:27 PM on Mar. 28, 2010

  • "Just because you don't understand the reason, doesn't mean that the reason isn't a good one. "

    Obviously this anon doesn't know, but still has "hope". (Or Koolaid)

    It's all talk, NP, not any real, concrete action. That way Obama can make promises that sound good, and blame the bankers when nothing comes of it.

    mancosmomma

    Answer by mancosmomma at 8:31 PM on Mar. 28, 2010

  • Maybe they are hoarding it for when the bottom really falls out...

    I own a business and I don't need a loan. I even have the money to expand if I want. What I NEED is to stop being taxed and regulated to death..this comes from the federal AND the state government. I would love to expand and start a line of high quality reasonably priced children's clothing, made by US citizens and using materials made in the US by US owned companies. I don't dare take it past the dream stage though..especially not in the state I am currently stuck in because of my husbands military job.
    yourspecialkid

    Answer by yourspecialkid at 9:43 PM on Mar. 28, 2010

  • Just slightly OT -- why did he go ahead and appoint Becker? That will just help the small businesses SOOOOOOO MUCH! NOT! I don't own a business, and even I can see how this is not good for anyone who owns a small business.
    29again

    Answer by 29again at 10:05 PM on Mar. 28, 2010

  • Just because you don't understand the reason, doesn't mean that the reason isn't a good one.

    Ok, since you know so much - why is the fed preparing to raise interest rates to keep the banks from dumping that trillion dollars all at once and kill the value of the dollar? If it's such a good reason, shouldn't they be offloading it now so the fed doesn't have to take special, economy SLOWING measures, to prevent them from hoarding and dumping?

    I'm really curious in light of Obama's insistence that the SBA is overseeing this money getting to business owners when in truth it's sitting in the bank depository accts. Raising those interest rates is actually counter to the intended purpose of the Recovery grant to the SBA.
    NotPanicking

    Answer by NotPanicking at 12:08 AM on Mar. 29, 2010

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