john in madison

Chicago Standoff, Redefaults Bode Ill for Bank Shares

I disagree with 'Kingnukem" above. Many businesses that have a cyclical business depend on lines of credit to cover daily business expenses (rent, salaries, utilities etc.) while the wait for their yearly income. I used to be in the window business, and try as we might, winter is a very big slow down in sales. Nobody wants his or her windows removed in the dead of winter. The consequence is that window companies have a severe slowdown in sales in winter, which causes them to rely on lines of credit until their busy spring/summer/fall season. They spend the time building product for spring installations and accumulating materials for the big installation season. This is not a failed business, but it did fail because Bank of America apparently cancelled a line of credit. The bank decided to keep the tax money we gave them to pay dividends and buy other banks. Reply |Report abuse

On Dec 09 08:11 AM Kingnukem wrote:

> Amazing. Who really believes that pumping money into any failed business
> saves anyone's job? Unless the business is Amtrak.

Chicago Standoff, Redefaults Bode Ill for Bank Shares

II disagree with 'Kingnukem" above. Many businesses that have a cyclical business depend on lines of credit to cover daily business expenses (rent, salaries, utilities etc.) while the wait for their yearly income. I used to be in the window business, and try as we might, winter is a very big slow down in sales. Nobody wants his or her windows removed in the dead of winter. The consequence is that window companies have a severe slowdown in sales in winter, which causes them to rely on lines of credit until their busy spring/summer/fall season. They spend the time building product for spring installations and accumulating materials for the big installation season. This is not a failed business, but it did fail because Bank of America apparently cancelled a line of credit. The bank decided to keep the tax money we gave them to pay dividends and buy other banks.

Chicago Standoff, Redefaults Bode Ill for Bank Shares

I agree with '1 world currency' above. You are a prejudiced idiot if you think a policy that is pro-worker is socialism. The purpose of the TARP was to buy up troubled bank assets in order to free up capital so banks will lend. This is exactly the scenario discussed by congress prior to the TARP funding, that is, if Congress did not act banks would stop lending to business, cutting or reducing lines of credit that are the lifeline of businesses whose business is cyclical. Congress may have left out specific requirements in the legislation but the banks know what was expected from them in exchange for this money.