Monday, March 16, 2009


Could the negative "Gloom & Doom" rhetoric finally come to an end?
It seems Team Obama has shifted gears over the weekend with the intent to put a new face on this economy.

The number of economists who are falling in line to proclaim a shorter recession, has jumped in numbers and the tune they are playing is sounding a bit less painful.

Obama's staff, Geithner and Summers worked the weekend talk shows with a hint that the downward slope may level off this spring and hover through the year before creeping upward. This is a change from the talking points just three weeks ago.

The announcement today reveals a plan to reduce small-business lending fees and an increase on the guarantee to some Smal
l Business Administration loans. Definitely an upbeat start.

Will Obama's role of "
confidence-builder in chief" help the slight bounce in the market take hold? It certainly cant hurt.

While a guest on a Sunday Press show, Larry Summers, Director of the National Economic Council, quoted the president: "It's never as good as people say it is when they say it's good and it's never as bad as people say it is when they say it's bad."

Lets just say he's learned both how to speak "Capitol Speak" while sifting through the extreme mixed messages from self proclaimed experts on economic issues.

So this fresh attention to small business. Will it be enough? Will it reach the struggling merchants in small cities like Kingston? I'd like to hear from local bank managers, just what difference this proposal will have on their ability to loan money with confidence.

Washington expects to offer more than $10 billion aimed at unfreezing the secondary credit market, in theory, this will lubricate the system and get small loans moving again. Will it affect my ability to refinance my home? I'd like to take advantage of these great rates, but the industry has the jitters when it comes to refinancing anything.

Small business is the main engine that keeps this country moving. The administration intends to do something about spuring economic growth. Small business has got to be part of the equation, as well as those big banking bailouts, healthcare reform and individual home forclosures.

Granted, it's only March 2009. Obama's been in office a few months. I do my best not to expect a complete turnaround in the first 100 days while many of us struggle with the same delusion. Lets see if this break for small business will be enough to pump a little HOPE into the system.


Anonymous said...

I am a small business owner and I don't need loans and more debt.

What I need is relief from the crushing taxes and insurances that are required by New York State and the Federal Government. The politicians never saw a spending program that they didn't like.

Politicians have put their desire to be re-elected over the needs of small businesses not to be taxed into bankruptcy.

Stop taxing us and spending our money on stupid programs to get yourselves re-elected.

Anonymous said...

The cynic in me believes that the change in rhetoric by Pres. Obama and the Democrats as a whole, is simply due to the idea that they no longer have anything political to gain by talking the economy down as they have been doing for the past 4 years or so. Just old campaign strategies being recycled.

In terms of how all of this will affect small businesses, I just am not sure. While freeing up credit will help, some of the other plans that Pres. Obama has may put a crimp on things. The big push for universal health care, cap and trade on carbon credits, public financed college education and other plans can lead to higher costs through either taxes or simply an increase in the cost of energy and other commodities. There are a lot of people guessing how all of this will play out, but the truth is, nobody really knows for sure. Economists can tell us why things happened in the past, but their prognotication skills leave a lot to be desired.

Anonymous said...

People like me tried to warn you folks that Obama was not up to the task but NOOOOO, you had to go & elect him.

He cant even fill his Cabinet & other positions,, & when he does they are typical Party hacks,, just like Vic Work, Or Hoffay.

GROAN, smell the coffee yet ???

Anonymous said...

i too am a small business owner in the city of kingston,and i agree that if its not the state taxing my industry to death then the city of kingston certainly doesnt help by making it increasingly more diffcult after that.i attempted to do some no avail,my local bank roundout savings and key banks both were unable to assist because of the new restrictions imposed by in essance its another road block hindering the growth of my business in the city of kingston.had i know conducting business in the city of kingston was going to be this difficult.i wouldnt have set up here.this IS NOT a business friendly city.i hope this main street manager will be helpfull but im not to like to know how the city is attempting to turn things arround,i just paid my sales tax and its off by 50% how are they or you mike going to deal with that when your compiling 2010 budjet for the city.hang on folks your tax burden is going to get way worse for 2010