Forum Post: Businesses did what business do
Posted 13 years ago on Oct. 28, 2011, 8:50 p.m. EST by BrainC
(400)
from Austin, TX
This content is user submitted and not an official statement
Does it really surprise anyone that these businesses that accepted bailout money pocketed the money rather than used it to try to better the economy? Really?
Businesses did what businesses do. Think about it, if it as if it was your household finances. There is an economic down turn and your bank account is running dry. You borrow money from your parents. Do you rush out an spend that money or would you put it in savings to be able to make it through the bad economy?
So, do we blame the businesses for doing what businesses do, or do we blame the ones that gave them the money without strict rules and regulations on how they were to use the money?
When did they pocket it? Banks need to pocket it to be solvent, its why they needed money it's called reserve, regardless if you have stopped lending you need a certain % of cash to leverage the loans you have given. YOu have no clue what you are talking about
I understand the process. They have to have a specific amount in reserve to be able to make loans. It is the perception that they accepted the money to cover their books, yet did not increase the amount of loans, or the amount of money that they loaned out.
That is why I was against the bailout in the first place. I was in favor of reviewing the mark to market on the foreclosed houses that the banks were carrying on the books.