I guess this proves one thing
Let the gov't get involved in the affairs of private citizens and/or Co.'s and they are sure to muck it up
JPM has stopped accepting new applications for small business loans
The flood of applications proves the demand was greater than anticipated and the process is so convoluted that JPM just up and said, no more until clarity from the gov't is more clearly spelled out, in legal terms that protects them from default on the loans they hand out
I can't blame JPM and I expect more banks to follow the lead of JPM
What a cluster ---
In Canada we have new rules daily and we can barely keep up with the new rules, so we are in a cluster--. That's why our people want to keep working. They know our pay roll cheques are good. Who knows what the gov't will decide
Anybody with 1/2 a brain knows the number of small business in the country, yours and ours, is huge. Why can't somebody with a calculator do a calculation of GDP by small business or any number of metrics and you can come up with some reasonably close numbers.. Anybody with a cheap calculator could estimate the demand for assistance. The unemployment numbers, by themselves, tell a good story about how serious and extensive, this is. Add to this party politics and you really have a cluster---
If small business don't get funds immediately this will have a ripple affect all the way up the ladder to land lords, utilities etc not being paid and they in turn don't pay until the banks are finally holding worthless or less valuable collateral for loans and then the tusumi of defaults hits all across the country
Trump wants to open up some regions for business but those are sparsely populated regions
The bulk of business is in densely populated areas, which won't be open for business any time soon.
As business close the doors, people lose jobs, that won't return, it can only get worse
Small business is the back bone of the country. The gov't sems to have a lack of calculators or people who know what numbers to use
Cruise lines are owned by wealthy people who hire foreign labour
Small business hires domestic labour
Is that too complicated for our leaders to understand
Probably is and anything we discuss on this forum is probably a waste of time
It looks like somebody actually does have a calculator and realized just how bad the short fall in funding would be
I have an idea that when JPM stopped all loan applications this got some immediate attention
So we read this morning the Fed has decided to back stop all loans with a series of different loans, which should fill in most of the countries needs for funding/loans
With a promise from the Fed of 2.3 trillion of additional money, this will go a long way for additional funding. Enough??, nobody knows but at least somebody realized the problem and is doing something.
Good for somebody [Fed]
Lets see if the Fed is any better at moving this money, to where it is needed, considering the flood of applications for funding
Let's see if Canada can also direct money where it is needed, in sufficient amounts and a timely manner
When this is all over, I suspect a good place for college applications would be in the field of forsenic accounting as there will be a flood of people hired, looking for possible fraud in the applications. Then lawyers etc which should help to kick start economic activity
"Trump wants to open up some regions for business but those are sparsely populated regions. The bulk of business is in densely populated areas, which won't be open for business any time soon.
As business close the doors, people lose jobs, that won't return, it can only get worse
Small business is the back bone of the country. The gov't sems to have a lack of calculators or people who know what numbers to use"
Thanks Wayne,
I don't know everything that Trump has stated but the reality is that sparsely populated areas are not nearly as affected by the number of infections as rural areas and maybe thats what your comment relates to.
Otherwise, I am confused as you seem to be saying that Trump is too focused on the small business in rural areas but then, that small business's like that are the backbone of the country.
Hi Mike
I try to be concise and don't explain so well
I was not referring to Trump. In fact opening up sparsely populated areas sounds like a good idea and perhaps rural areas with low infection or??
What I was referring to was the chaos created by the flood of applications for small business loans, with the hasty passage of the stimulas bill, with no clear instructions to the lenders but most of all the number of small business in this country and the fact the amount dedicated to small business would not hardly make a dent in the need for funds. That is why I said if somebody had a calculator and did the math of number of small business times the need of the average application, the funds were by far not enough. To make matters worse it was 1st come 1st served which resulted in a flood of applications trying to get at the head of the line before funds ran out. Then the problem of some small business who did not have a close relationship with a lender, who sort of got shuffled aside, and on and on with problems.
Then when JPM stopped accepting applications I said that must have got some attention because the very next day, the Fed announced 2.3 trillion for various loans and asset purchases. Now not the entire 2.3 trillion is for small business, but at least more funds will go to small business. At least there is a larger amount dedicated for small business, and we can only hope everybody who needs a loan will have an equal chance. Time will tell how this all works out, but we might take a guess that JPM must be big enough to rattle some cages and the Fed responded quickly
Hope this helps explain my thoughts
Thanks Wayne!