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The Biz Roundup December 2

Did I say $10 billion? Actually, I meant to say $18 billion, sorry, really, for the misunderstanding. :: “Of that $12 billion, GM wants $4 billion this month. In addition to the $12 billion, GM wants another $6 billion line of credit in case the market gets even worse.” But the car wash is free.
Did I say $25 billion? Actually, I meant to say $34 billion, sorry, senior moment there. :: “”both General Motors Corp. and Chrysler LLC could collapse by the end of the month unless they get billions of dollars in emergency loans from the government.” Now, either they knew they were going to collapse by December 31 three weeks ago, or they didn’t. Neither speaks well of management. So you think they’re going to buy a clue with that $34 billion dollars?
Plan? What plan? I thought we were following your plan!. :: “”If the answer is that banks do not have money to lend, it would make sense to push capital into their hands, as the Treasury has been doing over the last two months, she continued. But if the answer is that their potential borrowers are getting less creditworthy with each passing day, “pouring money into banks isn’t going to fix that problem,” she said.” The Paulson plan is revealing itself to be . . . keep swinging until you hit the pinata. Let’s make it real simple: without identifying the problem, credit won’t free up. Without credit, small businesses become former small businesses, start-ups become finished-ups, and entrepreneurs become wage earners. This is the most important crisis facing the small business dream in our lifetimes, and we’re playing pin the tail on the donkey?
At least someone has a plan that makes sense. :: “”Bair estimated that applying the IndyMac program throughout the industry would cost roughly $24 billion, through 2009, in government funds. That would be enough to help prevent as many as 1.5 million foreclosures.” Except for all those nimnulls with the lower tranche securities woven out of these mortgages; they don’t want to play ball because they’ll lose money, too. Forget that $700 billion that we’re giving them for free.
If you’re a self-employed entrepreneur, you still can’t even get a frigging home loan! :: “”Hubert Noguera, a 38-year-old medical-device engineer who also owns a small business, is one of them. He can’t get approved for a loan, even though he has a strong 800 credit score and is prepared to make a 40% down payment on a house near San Francisco in the $800,000-to-$900,000 range. Mr. Noguera says he has assets worth three times the $500,000 loan he’s requesting and is in the process of selling his share of a recently inherited residence in Saratoga, Calif., worth $1.1 million.” Do you get the feeling lenders are never going to get this risk thing down? Really, boys, ditch the dartboard for a stats calculator, you won’t regret the five sawbuck investment.

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