From
Hugh Hewitt comes this logical arrangement of initiatives put forth in yesterday's State of the Union speech. It's a bit long, but worth following. Because it truly points out that the SOTU was nothing more than a laundry list of political talking-points and campaign slogans. This was written by Clark Judge:
But let me get this straight:
1) banks
will be punished (do I understand this right, by a committee headed by
Eric Holder?) if their lending is too risky,
2) and they will be
required (by the same committee) to give more home loans (meaning, it
must be, to people who would otherwise not qualify for the loans, or
else the government would not have to be involved) at lower rates (which
means rates that do not compensate them as much as the market says they
need to be compensated for the risks they are taking, all of which
sounds like a new edition of the policies that brought on the financial
collapse),
3) which must mean that they will have to pull back on risky
lending someplace other than homes,
4) the only place that most banks
would be able to pull back on riskier customers would be loans to small
and new businesses,
5) but these are the businesses that have created
just about all the jobs over the last 20 years and he said early in the
speech he wants to encourage them,
6) so maybe their growth capital will
come from selling stock to the kinds of people who invest in new and
small businesses,
7) but through the Buffet Rule he’s going to double
the tax rate on investment income for those people, meaning that, like
the banks, they can’t be fully compensated for the risk of backing small
and new businesses,
8) so they will not invest more in small and new
companies but in big established firms,
9) so more of those small and
new firms will have to turn to the government for capital,
10) which
luckily he said would up its investing in early stage businesses with
“the best” ideas,