Tags: Thar | She | Blows | ToThePoint™ | Report)

Thar She Blows (A ToThePoint™ Report)

Monday, 02 June 2003 12:00 AM

Fed rules now allow an 80 percent loan maximum on the value of the primary source or collateral a business provides. In addition, a secondary source of collateral is also required – cash in the bank, an additional piece of property, etc.

The Fed makes a bank set aside an additional 40 percent of the loan's value if no secondary source is provided. Thus banks make very few loans without such secondary sources, and thus very few business loans are being made today, as it is too costly for businesses to provide them.

Most banks are doing little more than mortgages, as no secondary sources are required for house loans.

The word ToThePoint™ gets is that the Fed is going to significantly loosen the secondary source requirements for business loans. We expect this to be within the next 30 to 45 days.

The impact this will have on the economy will be enormous. The secondary source requirement is the single largest impediment to business. Substantially reducing it means that bank loans to big and small businesses will be readily available at very low interest rates.

The result will be a huge jump forward in the economy – and in job creation. A thriving economy in 2004 guarantees GW's re-election and major GOP gains in the House and Senate. There will only one thing to say about the DOW and NASDAQ: "Thar She Blows!"

Notice the scheduling. First, deflate the dollar to make U.S. exports more competitive. Second, pass major tax cuts designed to help business and investors. Third, inject liquidity into businesses by changing Fed credit rules. And all 18 months before the election.

When are the Democrats going to figure out that GW is much smarter than they are?

© 2020 Newsmax. All rights reserved.


   
1Like our page
2Share
Pre-2008
Fed rules now allow an 80 percent loan maximum on the value of the primary source or collateral a business provides.In addition, a secondary source of collateral is also required - cash in the bank, an additional piece of property, etc. The Fed makes a bank set aside an...
Thar,She,Blows,ToThePoint™,Report)
290
2003-00-02
Monday, 02 June 2003 12:00 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved