Saturday, June 13, 2009

So This Is What Politicized Lending Looks Like

Lending becomes increasingly political. This is not good.

Fom BusinessInsider at

So This Is What Politicized Lending Looks Like:
"It was inevitable that the increasing role of the Fed in our economy would draw it deeper into the morass of politics.

Now the New York Times describes the efforts of various companies--from rental car giants like Hertz to manufacturers of speedboats, snowmobiles and R.V.s--to get financial assistance from Fed lending programs. The Fed is increasingly having to make politically sensitive choices.

Highly illustrative is the R.V. case. The R.V. industry has been heavily battered by the recession.....But the R.V. people fired up their lobbysts, the president made a trip to Elkhart, Ind--...and by March the Fed said it would finance equipment leasing deals, rental car fleets and “floor plan” loans, which car and R.V. dealers use to finance showroom vehicles."

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