I spent a few minutes today explaining to my 9 year old the Prince John School of Economics currently being employed in our country right now. It is called taking from the producers and giving to the consumers…in this case, the big banks, etc. We all know the story because it has been going WAY TOO LONG. We have given trillions of our childrens’, grandchildrens’, and great-grandchildrens’ tax liability to this government to give to the sharks on Wall Street and foreign banks, and to the car companies and politicians; in hopes that the blackmail to the banks would easy the credit crunch. Has it? BBBWWWAAAHHHHHHHH!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Are you freakin’ kidding me? We are up to 98 failed banks since last Friday, the FDIC is broke, and I joined many of the newly unemployed in September during the green shoot recovery while Bernanke continues to state that the recession is over! The recession is still in full swing since small businesses and small business start ups are continuing to be strangled by this administration and congress.
But I digress…The numbers do not lie.
CHICAGO (Reuters) – Delinquencies among small and medium-sized U.S. businesses on the loans, leases and lines of credit they use to finance investment in capital equipment rose in August, PayNet Inc reported on Thursday.
Accounts in moderate delinquency, or those behind by 30 days or more, rose to 4.40 percent in August from 4.36 percent in July, said PayNet, which provides risk-management tools to the commercial lending industry.
Accounts 90 days or more behind in payment, or in severe delinquency, improved modestly, slipping to 1.51 percent in August from 1.52 percent in July. But those that were 180 days behind, or considered to be in default, rose to 0.81 percent in August from 0.78 percent in July.
The report is the latest to suggest the U.S. economy, which slipped into recession in December 2007, is experiencing a patchy rebound.
“The recovery that seems to be under way for large corporations and the stock market and certain parts of the economy doesn’t seem to have arrived yet for these companies,” said Bill Phelan, president and founder of Skokie, Illinois-based PayNet.
Separately, PayNet said its small business lending index, which had risen in June and July, fell at an annual rate of 20 percent in August. (emphasis mine)
“It’s too early to call it a trend,” Phelan said. “But it’s a little disheartening because this kind of activity is a leading indicator for gross domestic product.” (emphasis mine)
When are the tax cuts on the middle class and small business going to be implemented to get this economy back on it’s feet?
With Obama, Harry, Nancy, and the rest of the aristocracy in Washington, D.C. at the trough; I’m not holding my breath.