President Obama, please take note.
Low interest rates don't make it attractive to lend to small businesses. In fact, just the opposite.
Why would a bank risk their hard-earned (or TARP-borrowed) cash by lending to a small business when they can go to the Fed's discount window and borrow money at 0.25% interest and then buy U.S. Treasuries that pay a robust 4.45%?
I don't know either.
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1 comment:
Sounds like a great deal to me....I'd like to borrow a few billion at those rates.
Remember if you owe the bank 5 million dollars you have a problem, if you owe the bank 5 billion dollars, the bank has a problem.
Greg
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