I've alluded to this before...

[Lukey]

The nexus between Dodd Frank and the decline in the health of the small business economy:

http://www.aei.org/publication/the-slow-economic-recovery-explained/

Large corporations can get credit from the shadow banking system but small business gets financing one of two ways - family savings and community bank loans. I've long documented the ZIRP/QE punishment of savers, and I've mentioned before about the decline in the number of small, local banks since Dodd Frank took effect. So it should be no surprise that the small business community is shrinking:


And now we have empirical evidence that Dodd Frank is in fact a cause. As is the decline in savings as the war against money is waged by the Keynesians. Big business is growing and small business is struggling since Dodd Frank went into effect. Like I always say - this isn't rocket science.

Everything the Democrats have done under Obama's leadership has been wrong. No wonder so many of us are convinced we need to go in a different direction:

http://www.realclearpolitics.com/epolls/other/direction_of_country-902.html

 

[Lukey]

Alright, lets try this. There's another little nugget in here regarding the meme about "financial crises are followed by slow recoveries." Um, nope:

First, a study by Michael Bordo and Joseph Haubrich showed that recoveries after financial crises are actually sharper than other recoveries. After studying 27 recession-recovery cycles since 1882, they concluded that “the stylized fact that deep contractions breed strong recoveries is particularly true when there is a financial crisis.” So we should have expected a steep recovery after the sharp 2008–09 recession rather than the stuttering and stalling economy we have experienced.

So, we're back to looking for similarities between the Great Depression and the Obama permanent recession. Looks like chalking it up to the anti-capitalist policies of FDR & Obama might have some validity, eh?

 

[Dino]

Alright, lets try this. There's another little nugget in here regarding the meme about "financial crises are followed by slow recoveries." Um, nope:

First, a study by Michael Bordo and Joseph Haubrich showed that recoveries after financial crises are actually sharper than other recoveries. After studying 27 recession-recovery cycles since 1882, they concluded that “the stylized fact that deep contractions breed strong recoveries is particularly true when there is a financial crisis.” So we should have expected a steep recovery after the sharp 2008–09 recession rather than the stuttering and stalling economy we have experienced.

So, we're back to looking for similarities between the Great Depression and the Obama permanent recession. Looks like chalking it up to the anti-capitalist policies of FDR & Obama might have some validity, eh?

For some reason this thread has been ignored as if you could contract an exotic disease from it.

 

[as seen on tv]

I could make an equally compelling case that the "cliff" (decline in business formations) which began in 2007 was the result of imprudent mortgage lending (liar loans; zero down; no doc loans, etc) that drove up foreclosures and made banks pull back from lending of ALL kinds.

when your house is on fire, you evacuate ALL the rooms, not just the one where the fire started.

 

[Lukey]

I could make an equally compelling case that the "cliff" (decline in business formations) which began in 2007 was the result of imprudent mortgage lending (liar loans; zero down; no doc loans, etc) that drove up foreclosures and made banks pull back from lending of ALL kinds.

when your house is on fire, you evacuate ALL the rooms, not just the one where the fire started.

It hasn't stopped big business from borrowing:

https://cbcapitalresearch.files.wordpress.com/2015/04/uscorporatedebtissuance.png?w=542&h=356

No doubt banks are more cautious, but as the number of local and regional banks declines the national chains move in and if you aren't looking for a huge loan with stellar credit they don't have time for you.

 

[connieb]

It hasn't stopped big business from borrowing:

https://cbcapitalresearch.files.wordpress.com/2015/04/uscorporatedebtissuance.png?w=542&h=356

No doubt banks are more cautious, but as the number of local and regional banks declines the national chains move in and if you aren't looking for a huge loan with stellar credit they don't have time for you.

And, THAT is such a big problem for entreprenuers. More and more people are turning to peer to peer lending groups for small business loans for this reason.

About the only thing I think the Gov't is useful for in the economy is eliminating unfair monopolies. But, not only do they suck at that... they have through their increased regulation - practically ensured that those monopolies will dominate.