THE MICRO-LENDING PARALLEL: Opinions Are Split on Fed Policy Move - WSJ.com
Why does the micro-lending (Gameen Bank) come to mind?
Well, it does seem as though the Fed is thinking of trying to boost the amount of lending (or money) in the economy.
But, is this 'non-micro' loan facility going to support the start of a business or an investment or just consumption?
Logic would say that as long as the US is 'not' the location of choice for business growth and expansion, the funds will just go to consumption - including overpaid public (union) employees, entitlement programs, unionized teachers that can't and don't know how to teach, early retirees (that should be paying for their own early retirement), overly generous healthcare programs, etc.
None of these are investments for the future and, as with a micro-loan that went for a 'wedding' vs. a 'business', the chances of payback are slim longer term.
Tuesday, November 2, 2010
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