I’m not sure what to make of this guy Geithner. It was very unnerving that as Geithner was speaking the market plummeted over 300 points. It is apparent that the people that buy and sell stock did not like what he was saying at all. As I mull over the points that he made today, I’m still not seeing how more and more government intervention is going to make things better. At one time a friend of mine and I were in the exploratory part of starting a business. We had a business plan put together but we were not comfortable enough to go to a bank and take out a lone. So we looked into an SBA loan from the government. Now just like any underwriter there were a great many things that they wanted. But as we started to read the fine print it was pretty convoluted and there were huge performance grades that had to be presented in return in a near term timeline. It just seemed so controlling that it also scared us. The SBA loan was way more than what we expected to have in returns in a short period of times. The SBA loan was very discouraging and we finally scrapped the business plan and I’m glad we did.
Tim Geithner seemed to have a concept but no clear plan on what exactly he and Obama were trying to do other than the same thing Clinton did and that is force banks to make loans when they don’t want to and credit cards not to issue credit. This is simply a rehash of what Bill Clinton did in 1997 when he expanded the Community Reinvestment act of 1977. Tim Geithner talked about a “Stress Test” for the banks.
Here is proof of that over and over and over again from 1997.
In the second page on document 10025 under “POINTS ASSIGNED FOR PERFORMANCE UNDER LENDING, INVESTMENT AND SERVICE TESTS” you will see the term “Component Test Rating.” It seems to me that this is the exact same thing that Tim Geithner wants to do. As you know this is what caused the train wreck we have today with the mortgage meltdown.
For some reason I cannot get the public to see these connections between Jimmy Carter, Bill Clinton and Barack Obama and there is no “CHANGE” and the real slogan should be “NO WE CAN”T!!!!” We have areal conundrum here and that is for past months ever since Obama started his campaign he has been fear mongering using the “Misery Index” that I had talked about earlier. The more he spews everyday telling us that if congress and the people do not approve of the “Spendulus” program thing are going to get a whole lot worse.
In a nut shell Barack Obama is creating all of the potential problems by telling the banks that if he doesn’t get his package passed than worse things will happen. How do you think the underwriters at these banks feel about loan applications in their inbox. Of course they are real reluctant to write loans based on what Barack Obama is saying.
Barack has also mentioned that he not absolutely sure this will work and if it does it will take a few years for it to really have an impact.
So evan Barack Obama is not sure if this “Spendulus” package will work. I’m not sold on this guy Tim Geithner, the guy that doesn’t pay his taxes on time.