The First Dope announces yet another plan that is supposed to help small businesses. As usual the idea is to call the program something that everyone agrees is a good idea. The actual plan is somewhat different.
He wants to give the Small Business Administration $12 billion to states (?) to provide loans and provide banks with under $10 billion in assets another $30 billion dollars to make small business loans. The basis of the idea is to “ease the terms for loans”. Brilliant!! Another program that is designed to give money out to people based upon no known lending standards. And the money would not have to be repaid to the government based upon how many small business loans were made. Another $30 billion down the drain.
The double whammy is that they want to lower the loan standards and at the same time reward the banks for making the loans with low standards. Sound familiar? This is exactly what Freddie Mac and Fannie Mae did to mortgage lending that cause all the problems in the first place.
Keep doing the same thing and expect different results. Definition of an Idiot.