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Old 11-04-2008, 07:23 PM   #4
Steve_A
Project Avalon Moderator
 
Join Date: Sep 2008
Location: Northeastern Brazil
Posts: 1,259
Default Re: You are lending yourself money and paying interest on it! Go figure!!

Hi ralok_j,

The initial bailout plan for the major banks was to help small businesses. Small businesses borrow from the major banks. The report was extremely clear.

The proposal was not to help small businesses. The additional bailout is for smaller finance companies to keep liquidity, so they can lend money to the public.

Best regards,

Steve


Quote:
Originally Posted by ralok_j View Post
It would provide liquidity to the market. GE Capital and CIT provide lending avenues for small business, which are currently not being served by any banks. Without funds to operate we will continue to see a decline in our small business segment.
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