Why your small business clients cannot obtain bank loans today
Are you puzzled why your small business clients have been unable to obtain loans today even though the Federal Reserve has lowered the Federal funds rate to virtually 0% (i.e., .25%) for the past couple of years? As you know, the Fed has lowered the Fed funds rate to ease up on credit conditions in an effort to provide ready monies for small businesses to meet payroll and remain solvent and for consumers to pay their mortgages and avoid foreclosures on their homes. And do you know what has become of these monies?
Banksters, such as JP MorganChase, Bank of America, and others, have been borrowing hundreds of billions of dollars and instead of lending it back to small businesses and consumers, they have been buying Treasury bills and earning sometimes as much as 3.5% on your tax dollars. Neat, huh?
Let's see: we give these banks hundreds of billions of our tax dollars at virtually a zero percentage lending rate, only to have these banksters lend our own monies back to us at interest rates as high as 3.5%, with each big bank earning hundreds and hundreds of millions of dollars from us in interest payments each year. LOL! Now I ask you, do you know a safer, quicker, easier, and dirtier way to make big money? Timothy Geithner appears to be taking good care of all his buddies on Wall Street. I am sure that he will be well rewarded by Wall Streeters when he leaves his government post as the United States Secretary of the Treasury. What a guy!
Of course, the obvious rhetorical question is, why isn't anyone in the Land of Washington minding the cash register of the American taxpayer?
For more on this scam, please see Banks charge taxpayers for their own money. Banks are robbing the middle class.
The Barefoot Accountant—is a Certified Public Accountant, Certified QuickBooks ProAdvisor, operating an accounting, tax, and QuickBooks consulting firm in Berlin, Connecticut, Accountants CPA Hartford, Connecticut, LLC. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. Bill is a crazed animal lover, feeding birds, squirrels, chipmunks, skunks, possums, stray cats, and any two-legged or four-legged critter traversing through his yard. His backyard in Berlin, Connecticut has been certified as a habitat suitable for wildlife by the National Wildlife Federation.
Bill also writes an Accounting, QuickBooks, and Tax blog: Accounting, QuickBooks, and Taxes by the Barefoot Accountant. For entertaining articles, please see his listing at The Amazing Brighenti.