Friday, November 27, 2009


The Federal Government handed out all kinds of money to American banks that was supposed to be used to generate economic growth. Instead, they have hoarded it or lent it to foriegn investors in places like Dubai.

"New York-based Citigroup (C, Fortune 500) has the most exposure to default risk at Dubai World, which a J.P. Morgan (JPM, Fortune 500) equity research note estimated at $1.9 billion. Citigroup declined to comment." CNN

Yet we are supposed to believe that somehow the bailouts have created a million jobs. WHERE!!?? In Dubai?

I suppose that the banks will be going back to the trough for more money shortly and the FED will give it to them. After all, "They're just too big to fail."

"U.S. banks are earning money again, but they're writing fewer business loans, threatening a fragile economic recovery.
The Federal Deposit Insurance Corp. reported Tuesday that U.S. bank loans fell by $210.4 billion or 2.8% during the third quarter – the biggest drop since the FDIC started keeping records in 1984. Banks booked $2.8 billion in third-quarter profits, reversing a second-quarter loss of $4.3 billion. "We need to see banks making more loans to their business customers," says FDIC Chairman Sheila Bair. "This is especially true for small businesses..."

"...Until small businesses are able to borrow, we can't have a robust economy, because that's your largest source of jobs," says Richard Posner, a law professor at the University of Chicago and a federal circuit judge. The Small Business Administration has said that small businesses created 64% of new jobs in the past 15 years."

USA Today

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