Let me say, up front that I am not in favor of any government intervention in the private markets other than sensible regulations to ensure a fair playing field for all participants. But, His Majesty, the King, President Obama obviously believes quite differently.
You would think that, with all of Obama’s talk about understanding the importance of small business and wanting to insure that they succeed and grow, and his willingness to stick his nose where it doesn’t belong, he wouldn’t turn his back on “an important lender to small- and medium-sized businesses.” But the Wall street Journal reports that:
“Ailing business lender CIT said late Wednesday “there is no appreciable likelihood” it will receive fresh government support in the near future.
This is startling because “CIT is a source of financing for thousands of small to medium-sized businesses”, you, know, just the kinds of businesses we should be supporting if we’re going to get into the private sector. But, instead of support, the Obama administration appears to be facilitating the demise of American small business.
To bring the importance of this issue into better focus, according to the Chicago Tribune,
“Few consumers realize the influence of CIT Group Inc., but the company’s perilous footing could trip up a huge swath of the business world, affecting everything from holiday season gift choices to payroll at local companies.
CIT lends more than $60 billion to retailers and smaller companies, feeding them the capital they need for operations, purchases and other uses. Despite getting caught up in the credit crunch, it is unlikely to get a government bailout. The White House appears to have decided CIT’s collapse would not represent a knock-out blow to the economy.
In Northfield, the owner of Select Rehabilitation may have to dig into his own pockets to fund the payroll for the company’s 3,000 physical therapists in 20 states. CIT stopped wiring funds to the company Wednesday.”
It’s been widely reported that businesses, in general, and small businesses, in particular, are holding off on hiring and other investments because of a severe lack of available credit. Now it appears that existing payroll may also be in jeopardy because of the Obama administration’s inaction in this vital marketplace.
The only question is motive. Is this an attempt by Obama to get more of the private sector under his thumb? Or, is the a demonstration of his contempt for middle America?