The next phase of the credit recovery process has to go through small businesses and that means that the Small Business Administration needs to have new authority to lend directly to small business just like the TARP program does with Banks. In addition, current SBA loan gaurantee programs need to be expanded to MESBICS and Community Development Financial Institutions.
The King is afraid that the SBA is being ignored in the Obama Administration and that would be a major mistake. At this point in the credit recovery process, the SBA is more important than FannieMae, AIG, BoA, FreddieMac and Wachovia combined. Either greatly expand the SBA or absorb them into the Treasury Department so that they can get to work.
I wish I could give my associates better news such as when will the recovery start but I have not seen the signs that anyone in Washington gets it. This recovery will not start with Washington DC bureacrats or New York financiers but Michigan and Oklahoma factories. The recovery will start with the honest assesment that Bank of America could not possibly acquire the bankrupt Countrywide and the zombie Merrill Lynch even with over 100 Billion in Bankrobber Bernake assistance and servive as a single entity. Countrywides Pay Option Arm portfolio has not even bottomed out yet. Once you see the headlines BoA sells operations, start the recovery.
My clients will be ready