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Bailey Brothers Building and Loan

By Owen Paine on Saturday October 3, 2009 12:05 PM

Nice WSJ article on small-potato credit by billowy lass and bank analyst Meredith Whitney, shown above.

'Twould appear, between credit card contractions and a stagnating small biz credit pool, there's trouble on main street.

I suggest we supersize the SBA, crank it up like the Fanny and Freddie show. Yup, i'm talkin trillions here.

Here's Meredith W:

"Incentives should be provided to smaller banks to step up small-business loans on a greater scale. Smaller banks could not only bridge gaps created by the shut down in the securitization market but also gaps being created by a massive contraction in credit-card lines. Arguably credit would perform better with these types of loans as they would reintroduce and reinforce the most important rule in banking: "Know Your Customer."
Yes yes yes, as Molly Bloom sez somewhere -- use the local Jimmy Stewart ops to pour out the SBA trillions, and "if you ain't local, we ain't repurchasing your loans," sez my bulked-up SBA

One Shylock rule only: the locals have to keep ten percent of their own flesh as hostage inside the repurchased bundles.

Comments (11)

But SBA loans for what? To sell what to whom? Isn't effective demand the issue? And you can't really think they're somehow going to start letting people use SBA money as some kind of personal grant, can you? The overclass wouldn't allow it. Free money is for them, not us.



start ups

department one loans
not department two
but Y = C + I
this is increasing effective deman thhru increasing petty I

i guess since we're so big corp hi tech focused in our system critique
we over look
the effective demand of small biz for its
means of production
the destruction rate for small biz
rises with a rising creation rate
on average
open a ma and pa pizza parlor
and prolly you squeeze 3/4 of another( or more ) out of busines
i'd just like to see a much higher
creation rate

its full of detail i'm too lazy to lay out

but trust me
i'm on to something
most recovering maoists miss


suffice it to say
its pro commercialism if not capitalism

american dream ezee-loans
oughta exist for more
then schoolin' and house lots

the zillionaire crowd
don't like free lunch under a shade tree
in the park
but a borrowed lunch
at the under construction shop site....


my latest gig

interest rate insurance

ask yourself
why is interest rate risk not removed by variable rate securities ?

the debtors want a clear certain
stream of payments to make
so uncle insures against the variation
ie all note bonds loans etc are variable
ie float with the spot rate
and this is by law so to speak
but uncle will insure against interest cost ncreases
if you pay a premium

as these things work out
when risks are pooled at the highest level
the fed or treasury
ie at the mouth of the limitless dollar mine

thus the social premium
would be less then
that now built in to cover
private risk on fixed rate issues

every one gains ...


Sorry to intrude in this esoteric discussion, but Diana Johnstone's "Is Socialism Dead" in today's Counterpunch is worth reading:



Sorry for the above: "esoteric" should have been "fascinating". Damned French keyboard!

But i in what, op-san? Coffee shops? Candles and geegaws? Gourmet dog food bakeries?


no doubt

but wild gizzzmos too
and massive die offs of course

a flowering of petty dreamscapes
in search of comparatively scarce real dollars

Son of Uncle Sam:

Me droogs and me like the fine lass, would love to have her over to listen to Lugwig Van!
-"Know You Customer"-
Indeed- I'm singing in the rain just singing in the rain.....
MD - I walked into SBA 10 months ago and the man behind the counter promised me 50k without batting an eye- In fact he said he had it on his person. payback was 500.00 a mo for 120 mo.
plus one pulled pork sandwich every wednesday.
As I report to a Boston UA Local every wednesday we were unable to make a deal.

Son of Uncle Sam:

By the way, is she count chocula's wife? What's w/ that shirt


hey corporal dave
round here wednesday is prince spaghetti day

pullin pork ....??

...well that depends on the pork i guess

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