Despite hundreds of billions of taxpayer dollars, the big banks on Wall St are not aiding small businesses. According to Elizabeth Warren, Chairwoman of the Congressional Oversight Panel on TARP, Wall St’s largest banks reduced their small business loan portfolios by 9% between 2008 and 2009.
Warren called the report “infuriating”, and added, “Two out of every three new jobs created in America come out of a small business. Fifty percent of the private workforce is in small business…If they don’t have access to credit it’s not only a problem to them now, but they can’t help fund the recovery.”
Warren hopes that Congress passes the $30 billion proposed Small Business Lending Fund, although she is concerned that it may not be enough to level the playing field. She said, “If…there’s more money available to big businesses and less money available to small businesses, we really end up tilting the playing field…and that’s not going to help the recovery.”
But, is this really any surprise? Wasn’t Wall St destined to pursue its own self-interests with taxpayer money?
Bush, Obama, McCain, and hundreds of other congressional Democrats and Republicans fully supported the $700 billion Wall St bailout. Yet, the bank bailout has proven to be a boon for Wall St, while Main St has largely been left behind.
TARP rescued and preserved the banking giants, leading to a huge, year-long stock market rally, while during the same period, official unemployment shot to 10% and corporate & individual bankruptcies soared. In addition, over 200 medium to small-sized banks failed.
As Congressman Ron Paul said, America’s fiscal and monetary policies are run by corporatists, in both the Democratic and Republican parties. Based on this recent TARP report, the trend toward blatant corporate favortism has only been further entrenched.
Any wonder why 31% of Americans are now supporting the rise of a 3rd party?