Comments on: Did we fix banking, or not?

By: Karen Wilhelm

Karen Wilhelm — Wed, 13 Jan 2010 15:37:16 +0000

Remember Willie Sutton’s words on why he robbed banks — cause that’s where the money is. People will always find positions of power where they will rake off the cash. We just need to make sure that they leave enough for the rest of us.

By: Jamie Flinchbaugh

Jamie Flinchbaugh — Tue, 12 Jan 2010 22:41:39 +0000

Thank you everyone for your comments.

A lot of small businesses are desperate for loans. They need them just to operate on a normal day-to-day basis. But the banks have fallen back so far on lending requirements that the loans just don’t exist anymore. Even cash-flow-positive businesses are having trouble getting ABL (asset-based lending) which is about as secure as it gets.

In this case, I don’t believe corruption is the problem. I believe people pulled Lever A assuming it would have an impact on Outcome B. But they never really tested to see if Outcome B improved (which it hasn’t).

By: Tim Danyo

Tim Danyo — Tue, 12 Jan 2010 22:20:05 +0000

I’m not a financial expert, but I do know the government can not and is not a creator of wealth. They can help create a business friendly atmosphere. What’s hurting so many businesses is the total uncertainty there is because of the past failures of government to solve economic problems, the present and complete debacle of the past stimulus’ and the future menace of regulations, taxes, and government take overs in the private sector. The corruption that is going on right now is brain numbing. The reason why small businesses are not asking for loans is because they are scared and rightly so. Also, banks do not want to take on risk especially in this current economic environment, which is very much fed, and government created. Can you tell I’m a libertarian?

By: TIm McMahon

TIm McMahon — Tue, 12 Jan 2010 13:29:40 +0000

I haven’t had much expereinece with small business loans but follow the story in the news. My drive to our main plant is littered with more businesses every month that are closing. It is truly sad.
While watching Foxnews yesterday they had a piece on small business financial issues and that the goverment helped the big guys not the little guys. It higlighted all the uncertainty in Washington as a cause for lack of growth. Businesses don’t know how much more they will have to pay for all this spending so they are being cautious. This is similiar to the bank issues where they practiced overproduction and now are swinging the other way be too much consolidation.

The line I like best in that piece which I think is so fitting is that Toxic Attitudes are worse than Toxic Assets.

Change the attitudes in Washington by using your voice and your vote. Two rights we still have.

Thanks for highlighting this important issue Jamie.

Tim McMahon
A Lean Journey Blog
http://leanjourneytruenorth.blogspot.com

By: Jim Baran

Jim Baran — Tue, 12 Jan 2010 12:07:11 +0000

Great topic Jamie.

We’ve had much experience in the past year as a small business with a bankable performance record. We struggled getting funding to move our success forward.

We managed funding, but not without much consternation and wasteful justification work.

Ambition and managed growth was once bankable. No more.

I’ve learned an important lesson in 2009. Our business is returning to a self-funded craftsman model. Slow down, do good work, and make distinction your reach.

Whatever happens in the banking world is beyond my control. It is what it is. Collectively, we’re better than this model.

I’m interested to learn from others on what new criteria they will set for themselves to become bankable to the people who really matter.

Jim