Wednesday, October 8, 2008

I've Asked the Same Question, WRH

"Federal Reserve to bailout small businesses
The Federal Reserve is buying up massive amounts of debt to help small businesses who need loans to pay their employees and other expenses.

Webmaster's Commentary:

"I have a problem with this. I have run a small business. I never, EVER, had to borrow money to pay my employees. I paid my employees out of the payments made to the company. Isn't that how it is supposed to work? When did payroll start having to involve a loan (and interest paid to a bank)?" -- Webmaster of Wake the Flock Up

Something stank to me when I first heard that philosophy, too.

WTF kind of a business needs LOANS to meet PAYROLL?


Also see: Mass. Economy at the Mercy of Wall Street as it Borrows Itself Into Oblivion