Monday, March 16, 2009

President Obama Moves To Open Credit for SBA, and Block AIG Bonuses

President Barack Obama today announced he will move to purchase $15 billion in SBA loans. This should immediately unfreeze credit lines to SBA. Hence, opening lines of credit to Small Businesses. He points out that community banks have been unable to raise funds to loan to the small business sector. He says in this way he hopes to help the millions of small businesses who are shouldering the burden of the poor economy.

President Obama then turns conversation to AIG. The insurance giant who keeps coming back for more money to Washington. AIG that claims to be too big to fail. Obama says he is poised to block executive bonuses at AIG. Obama is quoted as saying, "This is a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?"

So, maybe there is hope of someone taking the reins of spending foolishly.

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