Comments on: The Bailout http://www.baldowski.org/2008/10/11/the-bailout/ Brian Baldowski Sun, 20 May 2012 22:16:03 +0000 http://wordpress.org/?v=2.3.1 By: Brian Baldowski http://www.baldowski.org/2008/10/11/the-bailout/#comment-64 Brian Baldowski Sat, 11 Oct 2008 15:17:07 +0000 http://www.baldowski.org/2008/10/11/the-bailout/#comment-64 One of the analogies Forbes used was blood flow. He said that every organ in the body may be perfectly healthy but if there is no blood flow they will die. He said credit to the economy is the same as blood in the body. I understand what he is saying. As far as credit goes what he is talking about is business credit that is loaned everyday to help businesses keep running. As I am sure you are aware, it takes alot of money to start up a business. A business that requires retail or other space costs even more. Until that business begins to break even or make a profit the only way to stay afloat is credit lines. A friend of my wives just opened a wine store. He was quoted in the paper as being worried his business line of credit would be shut down even though he has already set up the loan. A store such as his will not break even, if it survives, for about five years. He will need that line of credit if he wants to try to stay in business. So, I agree that personal credit may need to be reined in some but business credit needs to flow. One of the analogies Forbes used was blood flow. He said that every organ in the body may be perfectly healthy but if there is no blood flow they will die. He said credit to the economy is the same as blood in the body. I understand what he is saying. As far as credit goes what he is talking about is business credit that is loaned everyday to help businesses keep running. As I am sure you are aware, it takes alot of money to start up a business. A business that requires retail or other space costs even more. Until that business begins to break even or make a profit the only way to stay afloat is credit lines. A friend of my wives just opened a wine store. He was quoted in the paper as being worried his business line of credit would be shut down even though he has already set up the loan. A store such as his will not break even, if it survives, for about five years. He will need that line of credit if he wants to try to stay in business. So, I agree that personal credit may need to be reined in some but business credit needs to flow.

]]> By: Jeremy Clifton http://www.baldowski.org/2008/10/11/the-bailout/#comment-61 Jeremy Clifton Sat, 11 Oct 2008 14:08:46 +0000 http://www.baldowski.org/2008/10/11/the-bailout/#comment-61 The economy is healthy except for the blockage of funds? That sounds like "sir, your heart is healthy except for the blockage of the arteries" to me ... Not that I agree with his premise or conclusions ... it just struck me as being a fairly inconsistent statement. Anyway ... yes, it might unclog the credit pipes, but to what end? I can't see any good result that involves creating more credit. As far as "Internet" goes, you have to capitalize it to show that you are referring to "the" Internet, as opposed to all those lesser internets out there. :-) The economy is healthy except for the blockage of funds? That sounds like “sir, your heart is healthy except for the blockage of the arteries” to me …

Not that I agree with his premise or conclusions … it just struck me as being a fairly inconsistent statement.

Anyway … yes, it might unclog the credit pipes, but to what end? I can’t see any good result that involves creating more credit.

As far as “Internet” goes, you have to capitalize it to show that you are referring to “the” Internet, as opposed to all those lesser internets out there. :-)

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