When President Obama makes a plea for an increase in small business loans, it's certainly welcome, but it’s also politically expedient. Find me an American who disagrees that spirit of entrepreneurship shouldn't be encouraged and financed. But when the head of the Federal Reserve makes a similar call, people really sit up and take notice.
Late last week, Ben Bernanke, the man responsible for navigating Wall Street through the almost unprecedented financial chaos of the last few years, publically stated that America’s banks need to step up and do more for the country’s entrepreneurs and small business owners.
“While maintaining appropriate prudence, lenders should do all they can to meet the needs of legitimate, creditworthy borrowers,” Mr. Bernanke said at a meeting at the Federal Reserve Bank of Chicago’s branch in Detroit. “Encouraging lending to small businesses that are well positioned to pay is a positive, not a negative, for the safety and soundness of our banking system.”
He made a similar speech in Detorit recently. The IFA have backed-up this call. While Mr Bernanke’s appeal was short on specifics, it is still a laudable call. We hope that the executives sitting in Wall Street’s big banks sit up and take notice.
Meanwhile, Jay Goltz has offered an alternative opinion on the New York Times's You're The Boss blog.
"It’s the economy, Mr. Bernanke. Encouraging banks to lend more and small businesses to borrow more isn’t necessarily the answer to our problems. In fact, if I’m not mistaken, it had something to do with getting us into this mess."