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Obama Proposes Small Business Rescue Plan


Ohio Gov. Ted Stickland (D), Rep. Zack Space (D-Ohio), Democratic presidential nominee Sen. Barack Obama (D-Ill.) and Sen. Sherrod Brown (D-Ohio) clasp hands during a campaign rally at the Ross County Courthouse on Oct. 10, 2008 in Chillicothe, Ohio. (Mark Lyons/Getty Images)

By Robert Barnes
CHILLICOTHE, Ohio -- Barack Obama today proposed a plan of tax cuts and loans for small businesses hurt by the current credit crisis, a temporary program he said is needed to help Main Street and complement what has already been done for Wall Street.

He said the $5 billion Small Business Rescue Plan would be similar to one implemented after the terrorist attacks of Sept. 11, 2001, and would be run through the Small Business Administration.

He told a courthouse crowd that the program would be a way of "extending our hand to the shops and restaurants, the start-ups and small firms that create jobs and make our economy grow. Main Street needs relief and you need it now."

He said the plan would make it easier for private lenders to make small business loans by expanding the SBA's loan guarantee program and eliminating fees for borrowers and lenders.

Obama has previously called for eliminating capital gains taxes on investments in small businesses and start-ups and today proposed an additional temporary business tax incentive through next year to encourage new investments.

"Because it's time to protect the jobs we have and to create the jobs of tomorrow by unlocking the drive, and ingenuity, and innovation of the American people," Obama said.

By Web Politics Editor  |  October 10, 2008; 11:46 AM ET
Categories:  B_Blog , Barack Obama , Economy  
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Next: McCain Seeks Reform of 401(k) Rules

Comments

I like ronniesmith comments, fair and justify. I also notice that Mr. Obama can talk anything and promise anything that voters want to hear. The small business plan was not his plan at the beginning of his campaign until Sarah Palin mentioned about it. So, I feel Obama try to lure the voters to get into the White House rather than compromise to do things. I feel distrust.

Posted by: 9monster | October 11, 2008 1:17 AM | Report abuse

"Good idea Obama. It is a small but popular plan to help small businesses (usually the first to drop employees) who would be hurt the most in the business world by the credit crunch.

Obama's $5 billion plan is way more cost effective and palable than McCain's $300 billion bailout plan of bad mortgage lenders."

Posted by: AJ2008 | October 10, 2008 12:08 PM

When small business hurts, everybody else hurts. If small business feels better, everybody else will feel better, too.

Posted by: FirstMouse1 | October 10, 2008 11:00 PM | Report abuse

I hope Obama will ignore McCain’s petty little sniping and concentrate on delivering a major economic recovery plan on the scale of the New Deal, Great Society and the Marshall Plan. The world needs big ideas coming from America. Obama has the opportunity to become a great leader. GWBush had the same opportunity after 9-11 but he totally blew it. McCain doesn’t have the stuff and never will. Obama has the right stuff and he needs to start becoming our leader immediately. Get Buffett, Clinton, Bloomberg and other experts to draw up a bold plan who will also campaign on Obama’s behalf for a global economic recovery program.

Posted by: TeddyRoosevelt | October 10, 2008 10:52 PM | Report abuse

The Great OB on the economic crisis in the Galactic Republic USAmerica
The Hollywood Celebrities Council led by Oprah asked the Great OB to attend it in secret as the crucial emergency matters would be discussed. George Clooney opened with stuttering voice sprinkled with anger “you are the Great Leader, the only hope for us, you have to resolve this financial crisis. We are losing tons of money, man. Do you understand it? It is time to stop playing stupid. Get to work for us. Otherwise, I will have talk to my Ocean 11, no Ocean 12 about it.” Samuel Jackson repeated his mantra “we have a Leader, who will resolve the financial crisis for us.” Matt Damon and Ben Affleck agreed grudgingly chanting “the Great Leader, who will save our money, the Great Leader, who will save our money, the Great Leader who will save our money.” Barbara Streisand sang uplifting song titled “The Great Leader OB who will save our money.” Steve Spielberg reminded them about the importance of this campaign “our movie industry could be wiped out by this crisis; our money could be wiped up by this crisis, while we could have been making millions of dollars. We are asking you for not what you can do for your country, but what you can do for your friends. If we win we will be the rulers of the Galactic Republic USAmerica.” Matt Damon suggested marketing campaign to illustrate the Great OB’s efforts to rein in the present financial crisis. “We have got to market this thing through movie trailers. “ They all agreed that Democs are the ones to rescue the Galactic Republic USAmerica. The Great OB will lead the Force.
The Great Ob was furious. “This campaign is about change and hope that I will bring to the Galactic Republic USAmerica and the American people. Nobody told me about this crisis. I have so many programs to implement. Just listen: Now we need to pass a rescue plan for the middle-class that will provide every family immediate relief to cope with rising food and gas prices, save one million jobs by rebuilding our schools and roads, and help states and cities avoid budget cuts and tax increases. And we should extend expiring unemployment benefits to those Americans who've lost their jobs and can't find new ones.” “I will invest $15 billion a year in renewable sources of energy to create five million new, green jobs over the next decade - jobs that pay well and can't be outsourced; jobs building solar panels and wind turbines and fuel-efficient cars; jobs that will help us end our dependence on oil from Middle East dictators. I'll also put two million more Americans to work rebuilding our crumbling roads, schools, and bridges - because it is time to build an American infrastructure for the 21st century. And we'll give every child, everywhere the skills and the knowledge they need to compete with any worker, anywhere in the world. I will not allow countries to out-teach us today so they can out-compete us tomorrow. It is time to provide every American with a world-class education.” “That means investing in early childhood education. That means recruiting an army of new teachers, and paying them better, and giving them more support in exchange for higher standards and more accountability.” “That Darth Vader Mac and Governess Palin are getting under my skin.” Matt Damon interrupted the Great OB “The present economic crisis has turned into a full blown recession. There will be massive financial losses across the board with the broken government guaranteeing phantom credit so the businesses can continue its activities. What are we to do?” “Shut up stupid!” shouted the Great OB.
The only thing that stands between us and the dominance of the Gallactic Republic USAmerica is the Governess Palin. “We unleash the dark forces of the media at her. She is bound to crackle under dominance and unforgiving weight of the questions from the Charlie and Kathy. These two are sweet robots for us. We will deploy columnists from the New York Times to write about her day and night. We will deploy the best team on TV to analyze the Darth Vader Mac’s campaign. We will deploy Tina Fey. She is hot”
The great OB flew out of Hollywood to the vast prairies of the Galactic Republic USAmerica to hold more of his educational rallies. “This is all the fault of the Ruler W and the Dark Vador Mac.” The media reported that the polls went up for the Great OB. The Hollywood Celebrities Council sent the Great OB congratulations and informed him that they were sending reinforcements led by the great Rockers Bruce, Billy and Bon Jovi. The Great OB was again ecstatic “This time we will not pull back. We will destroy Governess Palin and the Darth Vader Mac will fall. “The Great OB sighed with relieve “The victory is close.” Just one more speech, just one more rally, more trashing of the Ruler W and the Dark Vador Mac. There was nothing that could stop the Great OB.

Posted by: Wiel | October 10, 2008 8:16 PM | Report abuse

fzelaya1, I understand your pain as a small business owner myself.

For me, it is okay you post thousand times a day if that helps to lessen your daily frustrations over this government.

Take care!

--------------------------

You've posted the same comment 3 or 4 times. If you don't have anything new to contribute then please quit posting.

It's tiresome to see people do that. I suspect they are just shrills for one side or the other.

Posted by: sbsc | October 10, 2008 4:49 PM

Posted by: AdvantaRipOff | October 10, 2008 5:35 PM | Report abuse

BARACK OBAMA AND JOE BIDEN’S PLAN FOR SMALL BUSINESS

This $5 billion plan is fine with me. It seems like small change at the macro level since we have already bailed out with $1 trillion costs for Wall Street and US banks.

More seriously, biggest evils are predatory bank lenders. They are almost 95% registered in TWO states namely Delaware and Utah. These are two states with lousy and goosy rules for banks. They have no limitation of virtually anything. Even, the FDIC has very little control over these banks since they are registered in Delaware and Utah.

I like to see cap on interest rates, these bank can legally charge on credit cards. Currently, they can charge any rate they want. No sheriff in town can stop them which is the biggest white-crime committed by these banks.

For example, some banks are charging as high as 36% on credit cards. Biggest culprit of this evil empire is Advanta Bank Card which is owned by Dennis Alter of Philadelphia.

Here is evidence you can share with other outraged citizens.

www.ripoffreport.com
----------------------------------------------------------------------------


Dear Mr. Xxxxxxxxx,

Thank you for contacting us about the terms of your Advanta account.

Your Advanta rates are based on a variety of factors including information about your Advanta account, such as credit line utilization and payment history and information we obtain from credit bureaus about your personal and business credit. The information we obtain from the credit bureaus can include your activity on any other accounts you may have including mortgages and other credit cards.

As a result of our review, your Annual Percentage Rate is now LIBOR + 32.59, currently 36.310%, for purchases and balance transfers. The cash and convenience check rate is now LIBOR + 32.59, currently 36.310%.

Our lending criteria are more conservative and may differ from other financial institutions. These changes do not mean you have bad credit. It means that based on our criteria, this is the APR (interest rate) we are able to offer for you to obtain credit from us with your business card account.

If you are having difficulty making your payments due to your interest rate please contact the National Foundation of Credit Counselors (NFCC) at 1-800-388-2227.

We appreciate the opportunity to serve you and your business needs. If you have any other questions or concerns, please feel free to contact our Customer Service Center. You can visit us online 24 hours a day at www.advanta.com or call us toll free at (800) 705-7255, Monday - Friday 8:00 am to 8:00 pm and Saturday 8:00 am to 5:00 pm Eastern Time.

Deborah Williams
Account Manager
Advanta

http://www.ripoffreport.com

Posted by: AdvantaRipOff | October 10, 2008 5:27 PM | Report abuse

I own a small business. It is a debt free business so a loan that I have to repay, including interest is NOT going to help me out. And contrary to some assertions, we most certainly DO pay taxes. We practice pass through accounting so the profits are counted as our personal income and taxed accordingly. We also pay all our own payroll taxes. We're not getting a free ride here and between taxes and regulations, it's getting increasingly more difficult each year to stay in business.

Posted by: wave41 | October 10, 2008 5:11 PM | Report abuse

Obama (O): ‘two additional brigades, perhaps threes…”

McCaine (M): “..we need at least three additional brigades..”

O:”…I think that the surge has succeeded”…

M: “..I think that what has happened there is that we succeeded…”

O: “…this phone companies immunity..”

M: “…immunity to those telecommunications corporations…”

M:”…I’m against the single payer…”

O: (forcefully)” …I never said that we should go ahead and try get single payer…”

M: “…the lift on our off shore oil exploration…”

O: “…increase in domestic oil exploration certainly has its place..”

M: “…free market approach..”

O: “…I believe in the free market..”

M:”..I believe in free trade…”

O: “…I believe in free trade…”

M:”…we can’t only not withdraw…”

O:”..I never said that the troops should be withdrawn..”


There is no difference between the two.

By mathematical logic, if A=C and B=A then B=C.

If A (McCain) = C (Bush's third term)

If B (Obama) = A (McCain) then

B (Obama) = C (Bush's third term).

PROVEN BY MATHEMATICAL LOGIC: VOTING FOR OBAMA OR MCCAIN MAKES NO DIFFERENCE.

Posted by: cintronlourdes | October 10, 2008 4:58 PM | Report abuse

fzelaya1,

You've posted the same comment 3 or 4 times. If you don't have anything new to contribute then please quit posting.

It's tiresome to see people do that. I suspect they are just shrills for one side or the other.

Posted by: sbsc | October 10, 2008 4:49 PM | Report abuse


As a small business owner who is struggling and had to let go of about 6 people last week... this

IS WHAT WE NEED!!!!!!!! I BAILED OUT AHOLES WHO SPENT 460K ON A WEEKEND TRIP!!!!!!

McBush policy will hurt my small business and force me to keep laying people off.

OBAMA 08!

Posted by: fzelaya1 | October 10, 2008 4:42 PM | Report abuse

The problem is that people don't take the time to realize that taxes are interconnected. For example, business doe NOT pay taxes. Biz simply passes taxes along to consumers... or goes out of biz because it cannot pass those costs along.

Saying that 95% of taxpayers will get a break is "cute" but is meaningless if our break comes at the expense of paying more for products/services.

Let me put this another way, "there is NO free lunch." We all pay, one way or the other.

To see what you'll really pay, try this link for a calculator that shows what happens to your 401k under various tax plans. This is from "Americans for tax Reform" which is a group that hates all tax increases...

http://www.atr.org/get401kcalc.html

Posted by: sbsc | October 10, 2008 4:40 PM | Report abuse

it is beyond me how people criticize Obama's christian church and him being a Muslim in one paragraph.

About bailout - as far as I know it had very broad support and if it didn't pass the opposers would have been blamed for the recent terrible days for the markets.

Bailout plan and small business funding have same target not freezing credit - or at least for the ones who need it in a sound way.

I personally oppose the bailout but don't think either candidate could have said no to it.

And the small business being taxed more under Obama - if one can read more than 5 letter talking point they understand that Obama's tax proposal is targeting the right stuff. How many times can 95% be said?

Posted by: overboard20 | October 10, 2008 4:12 PM | Report abuse

Betty_VA:

Based on your comments I can determine that you are a racist fool. Even IF Obama WERE a Muslim, Why would that matter? Are you so closeted in your perfect little WASP world that you can't accept that somebody who isn't like the other old white men who have run this country, might actually be capable of doing a better job? What favors exactly have the old white men running this country done for us um hmmm lets examine:

Trillions of Dollars in Debt
A War with no end in sight
Global Disgrace
Millions of people Without health care
Millions of people who are unemployed
Record illegal immigration

Betty I'm even willing to bet you've never even been to Canada much less out of your own state. Obama is not a socialist he's doing what is right. It is a government responsibility to make sure that it's people can take care of themselves. Without proper health care who can do that. Did you know 30% of kids going to school aren't even vaccinated? Did you know that there are kids who die of the flu because their parents don't have insurance? Did you know that many people who are stricken with cancer DIE because they can't afford the necessary care? Did you know that the same AIG people we just spent over 100 BILLION dollars bailing out are partying with your tax dollars thanks to your foolish Republican friends? I bet you didn't know that the President prior to election was accused of living in a segregated neighborhood? Maybe you are independently wealthy but the rest of this country is sick of the bigotry, failed policies, and other BS that seems to come with your Republican friends. Hey Betty why don't you do us a favor and call Hooked on Phonics because based on the information you have about Obama, you don't know HOW TO READ!!!!! By the way I'm white, gay and jewish so you can't say I don't have an open mind.

Posted by: jsmithers82 | October 10, 2008 3:43 PM | Report abuse

Never has a presidential candidate been as transparent and forthcoming as Barack Obama.
he was born in Hawaii and is as American as the apple pies his white Grandma made in Kansas where he grew up. You racist morons who keep spreading lies about Obama are the ones hiding who YOU really are.

Posted by: janeaddams | October 10, 2008 3:38 PM | Report abuse

So, Obama voted to Bailout big business but for theMom & Pop businesses, (65% of all businesses) will get to only borrow money to keep from going under. This is totally backwards!

Posted by: pipian | October 10, 2008 3:37 PM | Report abuse

As a small business owner who is struggling and had to let go of about 6 people last week... this


IS WHAT WE NEED!!!!!!!! I BAILED OUT AHOLES WHO SPENT 460K ON A WEEKEND TRIP!!!!!!

THANK YOU OBAMA!!!!!!!!!!!1

Posted by: fzelaya1 | October 10, 2008 3:27 PM | Report abuse

here is a small-business-rescue plan for the little socialist: Drop out of the race.

Posted by: MARKM2 | October 10, 2008 3:26 PM | Report abuse

As a small business owner who is struggling and had to let go of about 6 people last week... this


IS WHAT WE NEED!!!!!!!! I BAILED OUT AHOLES WHO SPENT 460K ON A WEEKEND TRIP!!!!!!

THANK YOU OBAMA!!!!!!!!!!!1

Posted by: fzelaya1 | October 10, 2008 3:25 PM | Report abuse

Obama is all talk and doesn't want to face the truth of his past and current ties. He doesn't have answers. Ask him specifics of how he wants to fix economy. He has none... just vague ideas and that won't fly.

Obama is a Muslim, wait no he is black Christian activist, wait no, he is now a non-denominational Christian - for the moment...

Obama is an ultra liberal and wants the war to stop now, wait no, he is a moderate and will end the war real soon, no wait, he is a liberal and now wants to pour more troops into Afghanistan, no wait, he is radical again and wants to invade Pakistan, who has nuclear weapons?

Obama has good roots in Kenya. Wait, where was he born? Is is actually a USA citizen or a Kenya citizen? Where is his birth certificate?

He wants establish programs for socialistic health care and for socialistic wealth redistribution... so he is a capitalist right? Or a socialist?

So just who is Obama? He is change - he changes all the time like a chameleon.

He is for world government - he had hundreds of thousands of Germans supporting him and chanting for him.

So let me get this straight.

This man, who was not born in the USA.
Who has deep Muslim upbringing.
Who then entered politics and changed his official religious beliefs.
Who started his political career with men who advocated the bombing of USA buildings like the pentagon.
Who voted more times present in the Illinois senate than any other politician ever, rather than taking a stand that may affect his political future.
Who, until it became a political liability, actively went to a black activist church which hates white people and Hispanics.
Who has deep ties to the Chicago political machine whose members include men being indicted on criminal charges.
Who was the senator who Freddie Mac and Fannie May gave the most money to before the economic crisis.
Who says he will sit down personally with terrorists focused on the destruction of the Jewish people.

This unknown is going to be giving the keys to move USA armies around the world, to be given the ability to spend the wealth of Americans, to determine the future of judges on the courts, to lead the most powerful country in the world with nuclear weapons, unchecked without a republican house or senate.

Are you serious? This is starting to sound very much like when Hitler was given power. Seriously. Yet the democrats are pulling off the homeless off the street and promising them meals to vote for Obama. How are so many so blind? Wake up America. We don't need another depression and world wars. He will say whatever you want to hear, to get into office... but what is his real agenda Who is really Obama? Obama, whoever he is, he is not Presidential material - not for the USA. Wake up America, wake up world... the world is at stake here.

Posted by: Betty_VA | October 10, 2008 3:24 PM | Report abuse

Yes, small business needs credit, but the credit providers need healthy business sector to lend money to. Obama is trying to restore balance. The capital markets just got help! Now it is time to help small businesses like the one I work for and that are struggling because of the overheads dumped on them in recent years. The capital markets need us to be healthy too.

Obama plan is EXACTLY the type of plan we need -- reward work and real wealth creation. This is not just a "credit" crisis. The real crisis is not enough "real" wealth creation behind leveraged wheeling and dealing that Bush tax policies favor.

Posted by: cmnsns | October 10, 2008 3:20 PM | Report abuse

Nice Obama

But small businesses arent in the stock market usually.

So the ones that are affected are the consumers invested in those in the stock market that cannot get credit to pay for things.

So WTF are retards lapping up this drivel for!??

So far, from Obama, EVERY SINGLE ECONOMIC PLAN IS USELESS OR HURTS THE USA.

Double Capital gains tax ( on stock market) love that one!

Raise taxes on rich for revenue ( not the same revenue you can expect now Obama is it!? Not to mention they will be firing people and cutting salaries to keep their money.

TAX break from gas windfall tax. Great, oil companies will simply raise the price by 25 cents and gain it all back and also increase the price of good transported.

Give money to schools ( where from now Obama!?) and the unions will probably steal all the money instead of it going to students.

So WHY THE HELL ARENT REPORTERS DOING THEIR JOB AND POINTING OUT THE GIANT FLAWS IN OBAMA'S PLAN? They are simply wrong, and at very least now lies, because they can't possibly be implemented!

Posted by: jabberwolff | October 10, 2008 3:19 PM | Report abuse

We need sound judgment in this time of national panic!

And who is gonna give it to us my friends?

Who?

http://www.youtube.com/watch?v=3i5T301aAWg

Posted by: sobugged1 | October 10, 2008 3:09 PM | Report abuse

Pray tell, mrn744, just exactly what reforms Palen [sic] introduced in Alaska.

Posted by: Cossackathon | October 10, 2008 3:08 PM | Report abuse

What is his plan - he's dropping out of the race?

Obama can say and do anything he wants during the campaign. These aren't legal constraints - these are election "promises".

The guys word, character, track record, background, and credibility are completely worthless.

You would have to be either naive or completely ignorant to believe him and everything in his history supports that as fact.

Posted by: Bcamp55 | October 10, 2008 3:08 PM | Report abuse

I don't think McCain can fix this either...

But, unlike Obama, he won't make it worse by increasing taxes!

Do you need someone to draw a diagram for you??? Raising taxes will KILL any chance of recovery. This is a simple fact that history has proven time and again.

You want me to vote for Obama? Extract an iron-clad promise not to raise taxes on anyone until the market is back to pre-crash levels...

BTW, you'll need to convince me that promise is worth something as I seem to remember a promise about campaign financing...

Posted by: sbsc | October 10, 2008 3:00 PM | Report abuse

John McCain does not have the ability to fix this economic crisis. After declaring the fundamentals of the economy strong, he created a political circus in Washington last week by mucking up bailout negotiations; a deplorable stunt, considering he and his political cronies helped cause the current meltdown.


It was McCain and his economic adviser Phil Gramm who pushed for the deregulation that helped lead to the banking crisis, and it was McCain's crony Rick Davis who had deep lobbyist ties to Freddie Mac. Don't let others be fooled by McCain's economic grandstanding because the reality is his policies and principles will only exacerbate our financial hardships.


McCain is being deceitful (again) with his sudden populist message and support for regulation; his economic policies still favor our nation's wealthy elite.
.
http://www.youtube.com/watch?v=C4egXbhSOhk
.

Posted by: DrainYou | October 10, 2008 2:53 PM | Report abuse

BARACK OBAMA AND JOE BIDEN’S PLAN FOR SMALL BUSINESS

There are approximately 25.8 million businesses in the United States and over 99 percent of all employers are small businesses, according to the U.S. Small Business Administration. Barack Obama and Joe Biden will help small businesses by cutting health care costs, improving access to capital and investing in innovation and development.

Lower Health Care Costs with a New Small Business Health Tax Credit: Barack Obama and Joe Biden understand that the skyrocketing cost of healthcare poses a serious competitive threat to America’s small businesses. Small businesses are the drivers of job growth in our economy, creating, on average, more than twothirds of net new jobs each year. Yet small business owners face unique challenges in providing health care to their employees, including higher administrative costs, lower bargaining power, greater price volatility and fewer pooling options. Barack Obama and Joe Biden will reduce the burden on small businesses in our economy by offering a new Small Business Health Tax Credit to help small businesses provide quality health care to their employees. The Obama Small Business Health Tax Credit will provide a refundable credit of up to 50 percent on premiums paid by small businesses on behalf of their employees. Obama’s Small Business Health Tax Credit will work alongside other aspects of his health care plan to lower costs and improve competitiveness for America’s small businesses, including:

• Access to a Low-cost National Health Exchange: The Obama health care plan will provide small businesses with new opportunities to buy low-cost, high quality health plans for their employees through a national exchange similar that will allow small businesses to get the same benefits of spreading risk and administrative costs over a large pool that larger businesses currently enjoy.

• Reduced Volatility and Lower Costs by Reimbursing Catastrophic Costs: The Obama plan will reimburse employer health plans for a portion of the catastrophic costs they incur above a threshold if they guarantee such savings are used to reduce the cost of workers’ premiums. This reimbursement (often called reinsurance) is particularly important for small business plans, which can be overwhelmed by the costs of catastrophic expenditures for even a single employee.

• Investment in Cost Reduction and Quality Improvement Strategies: The Obama plan will aggressively lower health costs by facilitating broad adoption of standards-based electronic health information systems, and other value-increasing innovations improving chronic care management, and increasing insurance market competition.

Provide Zero Capital Gains and Other Tax Relief for Small Businesses and Start Ups: Barack Obama believes that we need to reduce burdens on small business owners, many of whom are struggling to succeed as health care and energy costs continue to skyrocket. Barack Obama and Joe Biden will eliminate all capital gains taxes on small and start-up businesses to encourage innovation and job creation. Obama and Biden will support small business owners by providing a $500 “Making Work Pay” tax credit to almost every worker in America. Self-employed small business owners pay both the employee and the employer side of the payroll tax, and this measure will reduce the burdens of this double taxation.

Expand Loan Programs for Small Businesses: Access to capital is a top concern among small business owners. Barack Obama cosponsored the bipartisan Small Business Lending Reauthorization and Improvements Act. This bill expands the Small Business Administration’s loan and micro-loan programs which provide startup and long-term financing that small firms cannot receive through normal channels. Obama and Biden will work to help more entrepreneurs get loans, expand the network of lenders, and simplify the loan approval process.

Support Innovation and High-Tech Job Creation: Barack Obama believes we need to double federal funding for basic research, diversify energy sources, expand the deployment of broadband technology, and make the research and development tax credit permanent so that businesses can invest in innovation and create high-paying, secure jobs.

Create a National Network of Public-Private Business Incubators: Barack Obama and Joe Biden will support entrepreneurship and spur job growth by creating a national network of public-private business incubators. Business incubators facilitate the critical work of entrepreneurs in creating start-up companies. They offer help designing business plans, provide physical space, identify and address problems affecting all small businesses within a given community, and give advice on a wide range of business practices, including reducing overhead costs. Business incubators will engage the expertise and resources of local institutions of higher education and successful private sector businesses to help ensure that small businesses have both a strong plan and the resources for long-term success. Obama and Biden will invest $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.

Invest in Women-Owned Small Businesses: Women are majority owners of more than 28 percent of U.S. businesses, but lead less than 4 percent of venture capital-backed firms. Women business owners are more likely than white male business owners to have their loan applications denied. Barack Obama and Joe Biden encourage investment in women-owned businesses, providing more support to women business owners and reducing discrimination in lending. To create greater opportunities for women business owners who would like to do business with the federal government, Obama and Biden will implement the Women Owned Business contracting program that was signed into law by President Bill Clinton, but has yet to be implemented by the Bush Administration.

Increasing Minority Access to Capital: Access to venture capital is critically important to the development of minority-owned businesses. Yet there has been a growing gap between the amounts of venture capital available to minority-owned small businesses compared to other small businesses. Less than 1 percent of the $250 billion in venture capital dollars invested annually nationwide has been directed to the country’s 4.4 million minority business owners. And in recent years, there has been a significant decline in the share of Small Business Investment Company financings that have gone to minority-owned and women-owned businesses. In order to increase their size, capacity, and ability to do business with the federal government, and to compete in the open market, minority firms need greater access to venture capital investment, as well as greater access to business loans. Barack Obama and Joe Biden will strengthen Small Business Administration programs that provide capital to minority-owned businesses, support outreach programs that help minority business owners apply for loans, and work to encourage the growth and capacity of minority firms.

Promote Small Business Ownership in the Communications Industry: Barack Obama joined Senator John Kerry (D-MA) in calling on the Federal Communications Commission (FCC) to immediately address the issues of minority, women and small business media ownership before taking up a second review of wider media ownership rules. Obama has continued that fight by urging the FCC to establish an independent panel on minority and small business media ownership. As president, Obama will support efforts to achieve diverse media ownership, particularly in an era of increased media concentration.

Support Local Businesses Affected by Hurricane Katrina: In the wake of Hurricane Katrina, Barack Obama introduced the Hurricane Katrina Recovery Act to rebuild the Gulf Coast. This bill included language to increase the overnment-wide goal for procurement contracts awarded to small businesses owned and controlled by socially and economically disadvantaged individuals for recovery and reconstruction activities related to Hurricane Katrina. Obama also established a government-wide goal for procurement contracts awarded to local businesses in Katrina-affected areas of 30 percent of that total value for 2006 and 2007.

Provide Emergency Relief: Barack Obama supported legislation to provide emergency relief to small businesses affected by a significant increase in the price of heating oil, natural gas, propane, or kerosene. This bill authorized the Small Business Administration to make disaster loans to assist small businesses that have suffered or are likely to suffer substantial economic injury as the result of a significant increase in the price of heating fuel.

Support Rural Small Businesses: Barack Obama and Joe Biden will support entrepreneurship and spur job growth by establishing a small business and micro-enterprise initiative for rural America. The program will provide training and technical assistance for rural small business, and provide a 20 percent tax credit on up to $50,000 of investment in small owner-operated businesses. This initiative will put the full support of the nation’s economic policies behind rural entrepreneurship.

Promote Digital Inclusion: The lack of affordable, high-speed Internet access in rural, urban, and minority communities has created a digital divide between those who have access to the Internet and those who do not. This severely limits the growth potential of many urban and rural companies. Approximately only one-third of rural areas and half of urban areas have high-speed Internet at home or work. The areas affected by Hurricane Katrina have particularly suffered due to a lack of IT infrastructure. Barack Obama and Joe Biden believe we can get true broadband to every community in America through a combination of reform of the Universal Service Fund, better use of the nation’s wireless spectrum, promotion of next-generation technologies, and new tax and loan incentives. As a key step to achieving full broadband access, Obama believes the Federal Communications Commission should provide an accurate map of broadband availability using a true definition of broadband instead of the current 200 kbs standard and an assessment of obstacles to fuller broadband penetration.

Posted by: TheDiplomat | October 10, 2008 2:53 PM | Report abuse

I rest my case...

The DOW is trading at 8,000 and O/B are putting out a plan that is worried about smallbiz health care, minority ownership of media and broadband access.

HELLO, HELLO, HELLO!!! Is anyone there???

If the small biz closes its doors because there's no credit available to make payroll then there's no employee health care to worry about!

Put another way, it doesn't do any good to worry about your utility bills when the house has already burned to the ground!

Someone pls tell me this is bad dream.

Posted by: sbsc | October 10, 2008 2:47 PM | Report abuse

I am a liberal and a democrat. But, I want the president of my country to be selected based on merits, and not by an overwhelming bias, and propaganda. I don't understand why the media (almost all of them) and liberal-leaning papers like WP, NY Times, LA Times, Boston Globe, etc jump all over, when William Ayers or Tony Rezko's connections with Barack Obama is discussed. After all, if Obama does not have anything to worry, is it not welcome that this thing comes out in the open. Should Obama be protected from any criticism? Didn't the media push us into the Iraq War? They failed us once, and fail us again. In 2000 election, it was painful for me to see the media glowing over Bush as the savior of White House's "integrity" and "morality". We know what we got. Now, it is the media's turn to brainwash everyone into believing Obama has done nothing wrong, and will do none. Please don't push your agenda on us. If there is a story about Obama and Ayers, investigate it, explain it. Don't attack those who bring it in the open. In fact, before Palin talked about it or Clinton brought it, the media should have done that. We don't believe in Hannity. We want YOU to do it for us. Ask Obama why he associated with Ayers, Wright, and Rezko so long and in so much depth. Let the world know what he has to say. Don't push Obama into the White House. Let him earn it. We deserve that, and you (the news media) need to earn that respect, by asking tough questions to Obama too. Don't be a propaganda machine for any party or any candidate. The reason I am a Democrat is because of the dislike I have for right-wing loud mouths. We don't need left-wing cover-up machines. If you believe Obama is good, he'll come out clean. BUT DON'T COVER IT UP.

Posted by: ronniesmith123 | October 10, 2008 2:46 PM | Report abuse

BARACK OBAMA AND JOE BIDEN’S PLAN FOR SMALL BUSINESS

There are approximately 25.8 million businesses in the United States and over 99 percent of all employers are small businesses, according to the U.S. Small Business Administration. Barack Obama and Joe Biden will help small businesses by cutting health care costs, improving access to capital and investing in innovation and development.

Lower Health Care Costs with a New Small Business Health Tax Credit: Barack Obama and Joe Biden understand that the skyrocketing cost of healthcare poses a serious competitive threat to America’s small businesses. Small businesses are the drivers of job growth in our economy, creating, on average, more than twothirds of net new jobs each year. Yet small business owners face unique challenges in providing health care to their employees, including higher administrative costs, lower bargaining power, greater price volatility and fewer pooling options. Barack Obama and Joe Biden will reduce the burden on small businesses in our economy by offering a new Small Business Health Tax Credit to help small businesses provide quality health care to their employees. The Obama Small Business Health Tax Credit will provide a refundable credit of up to 50 percent on premiums paid by small businesses on behalf of their employees. Obama’s Small Business Health Tax Credit will work alongside other aspects of his health care plan to lower costs and improve competitiveness for America’s small businesses, including:

• Access to a Low-cost National Health Exchange: The Obama health care plan will provide small businesses with new opportunities to buy low-cost, high quality health plans for their employees through a national exchange similar that will allow small businesses to get the same benefits of spreading risk and administrative costs over a large pool that larger businesses currently enjoy.

• Reduced Volatility and Lower Costs by Reimbursing Catastrophic Costs: The Obama plan will reimburse employer health plans for a portion of the catastrophic costs they incur above a threshold if they guarantee such savings are used to reduce the cost of workers’ premiums. This reimbursement (often called reinsurance) is particularly important for small business plans, which can be overwhelmed by the costs of catastrophic expenditures for even a single employee.

• Investment in Cost Reduction and Quality Improvement Strategies: The Obama plan will aggressively lower health costs by facilitating broad adoption of standards-based electronic health information systems, and other value-increasing innovations improving chronic care management, and increasing insurance market competition.

Provide Zero Capital Gains and Other Tax Relief for Small Businesses and Start Ups: Barack Obama believes that we need to reduce burdens on small business owners, many of whom are struggling to succeed as health care and energy costs continue to skyrocket. Barack Obama and Joe Biden will eliminate all capital gains taxes on small and start-up businesses to encourage innovation and job creation. Obama and Biden will support small business owners by providing a $500 “Making Work Pay” tax credit to almost every worker in America. Self-employed small business owners pay both the employee and the employer side of the payroll tax, and this measure will reduce the burdens of this double taxation.

Expand Loan Programs for Small Businesses: Access to capital is a top concern among small business owners. Barack Obama cosponsored the bipartisan Small Business Lending Reauthorization and Improvements Act. This bill expands the Small Business Administration’s loan and micro-loan programs which provide startup and long-term financing that small firms cannot receive through normal channels. Obama and Biden will work to help more entrepreneurs get loans, expand the network of lenders, and simplify the loan approval process.

Support Innovation and High-Tech Job Creation: Barack Obama believes we need to double federal funding for basic research, diversify energy sources, expand the deployment of broadband technology, and make the research and development tax credit permanent so that businesses can invest in innovation and create high-paying, secure jobs.

Create a National Network of Public-Private Business Incubators: Barack Obama and Joe Biden will support entrepreneurship and spur job growth by creating a national network of public-private business incubators. Business incubators facilitate the critical work of entrepreneurs in creating start-up companies. They offer help designing business plans, provide physical space, identify and address problems affecting all small businesses within a given community, and give advice on a wide range of business practices, including reducing overhead costs. Business incubators will engage the expertise and resources of local institutions of higher education and successful private sector businesses to help ensure that small businesses have both a strong plan and the resources for long-term success. Obama and Biden will invest $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.

Invest in Women-Owned Small Businesses: Women are majority owners of more than 28 percent of U.S. businesses, but lead less than 4 percent of venture capital-backed firms. Women business owners are more likely than white male business owners to have their loan applications denied. Barack Obama and Joe Biden encourage investment in women-owned businesses, providing more support to women business owners and reducing discrimination in lending. To create greater opportunities for women business owners who would like to do business with the federal government, Obama and Biden will implement the Women Owned Business contracting program that was signed into law by President Bill Clinton, but has yet to be implemented by the Bush Administration.

Increasing Minority Access to Capital: Access to venture capital is critically important to the development of minority-owned businesses. Yet there has been a growing gap between the amounts of venture capital available to minority-owned small businesses compared to other small businesses. Less than 1 percent of the $250 billion in venture capital dollars invested annually nationwide has been directed to the country’s 4.4 million minority business owners. And in recent years, there has been a significant decline in the share of Small Business Investment Company financings that have gone to minority-owned and women-owned businesses. In order to increase their size, capacity, and ability to do business with the federal government, and to compete in the open market, minority firms need greater access to venture capital investment, as well as greater access to business loans. Barack Obama and Joe Biden will strengthen Small Business Administration programs that provide capital to minority-owned businesses, support outreach programs that help minority business owners apply for loans, and work to encourage the growth and capacity of minority firms.

Promote Small Business Ownership in the Communications Industry: Barack Obama joined Senator John Kerry (D-MA) in calling on the Federal Communications Commission (FCC) to immediately address the issues of minority, women and small business media ownership before taking up a second review of wider media ownership rules. Obama has continued that fight by urging the FCC to establish an independent panel on minority and small business media ownership. As president, Obama will support efforts to achieve diverse media ownership, particularly in an era of increased media concentration.

Support Local Businesses Affected by Hurricane Katrina: In the wake of Hurricane Katrina, Barack Obama introduced the Hurricane Katrina Recovery Act to rebuild the Gulf Coast. This bill included language to increase the overnment-wide goal for procurement contracts awarded to small businesses owned and controlled by socially and economically disadvantaged individuals for recovery and reconstruction activities related to Hurricane Katrina. Obama also established a government-wide goal for procurement contracts awarded to local businesses in Katrina-affected areas of 30 percent of that total value for 2006 and 2007.

Provide Emergency Relief: Barack Obama supported legislation to provide emergency relief to small businesses affected by a significant increase in the price of heating oil, natural gas, propane, or kerosene. This bill authorized the Small Business Administration to make disaster loans to assist small businesses that have suffered or are likely to suffer substantial economic injury as the result of a significant increase in the price of heating fuel.

Support Rural Small Businesses: Barack Obama and Joe Biden will support entrepreneurship and spur job growth by establishing a small business and micro-enterprise initiative for rural America. The program will provide training and technical assistance for rural small business, and provide a 20 percent tax credit on up to $50,000 of investment in small owner-operated businesses. This initiative will put the full support of the nation’s economic policies behind rural entrepreneurship.

Promote Digital Inclusion: The lack of affordable, high-speed Internet access in rural, urban, and minority communities has created a digital divide between those who have access to the Internet and those who do not. This severely limits the growth potential of many urban and rural companies. Approximately only one-third of rural areas and half of urban areas have high-speed Internet at home or work. The areas affected by Hurricane Katrina have particularly suffered due to a lack of IT infrastructure. Barack Obama and Joe Biden believe we can get true broadband to every community in America through a combination of reform of the Universal Service Fund, better use of the nation’s wireless spectrum, promotion of next-generation technologies, and new tax and loan incentives. As a key step to achieving full broadband access, Obama believes the Federal Communications Commission should provide an accurate map of broadband availability using a true definition of broadband instead of the current 200 kbs standard and an assessment of obstacles to fuller broadband penetration.

Posted by: TheDiplomat | October 10, 2008 2:38 PM | Report abuse

Can we please stick to historical FACTS when posting?

The FACTS on the New Deal are beyond dispute:

1. The New Deal was largely a failure.

2. The US economy did not recover from the Depression until WWII spending & mobilization brought full employment to the country.

3. WWII left the country saddled with a huge debt. We were able to get away with this as all our global competitors had been reduced to rubble...

4. The market (Wall Street) did not recover from the crash until the early 1950's...

FDR was many things, a saviour was not one of them. Despite what we were taught in elementary school (mostly wrong), the New Deal actually prolonged the Depression.

The moral lesson here is that Gov't cannot save us from our problems. As Churchill once said, "a nation cannot tax itself to prosperity..." (Slight paraphrase).

Strongly urge each and every one of you (on both sides) to quit drinking kool-aid! It is time for tough choices about our collective future. Cry-baby antics over singular issues needs to give way to collective survival instinct.

The bottom line is that everyone needs to be thinking about fiscal policy, what is proven to work and what doesn't.

FWIW, I'm not impressed with either O or M on economic issues. Neither one has a clue from what I have seen and read. That said, I think we had better be supporting fiscal conservatives wherever we can find them (meaning from whatever party) as there are NOT ENOUGH DOLLARS TO FIX THE ECONOMY AND MEET ALL THE CAMPAIGN PROMISES!

Let me just remind you that we elected Bill Clinton on a promise of a tax Cut for the Middle Class. He took office, declared things to be worse than expected and promptly raised taxes! And, before some fact-challenged partisan spouts off with the budget surplus that Bill left us, let's all remember that Bill's Surplus was largely the by-product of a thing called the Internet Boom... which CRASHED just as he left office.

Facts, as Gore loves to say, are inconvenient things. Time for all of us to quit the stupid bickering and start talking about the facts and what we do with them.

Posted by: sbsc | October 10, 2008 2:37 PM | Report abuse

Thank you ginashank, I have now made my decision.

Obama for President!

Obama/Biden 2008!

Posted by: TheDiplomat | October 10, 2008 2:26 PM | Report abuse

Obama True Hypocrat and Liar

Hides his previous connections with Ayers

Disowns Pastor when not needed any more(who know he can disown country too)

Can speak ( as today) but cannot vote against torture

Supporter but not follower of election reforms( words speak louder than action as is always case with Obama)

Supports Hope, Freedom but votes for Spy agencies tapping our Phone

cannot accept Surge Worked , he might be in bad position

Biden a Fool
He thinks Obama is not fit when he runs for president otherwise he is Fit

Obama is naive,has unknown family history

inexperienced like bush was in his first term.

His economic policies will ruin small business,

His health care plan will be a costly affair,

His tax plans would scare investors to other parts of world.

He speaks of alternative energy, opposed to drilling natural gas and building nuclear energy

We consume things at low price because Big corporations get tax cuts their spendign on innovations

If Big companies are taxed heavily , there will lose of jobs , loss of technical edge, higher priced commodities,higher cost of living

Mccain is attacking Root of problem mortegage Obama only wants to attach republicans he has no solid plan.

Obams lack of effectiveness showed up when he responded for russian attach on Georgia and opposition to surge

Mccain all years of experience brings balance and judgement to postion which wasnt there in Bush and Obama due to their in experience,Palen brings freshness of change and executive experience of reforms that she carried in alaska

Posted by: mrn744 | October 10, 2008 2:25 PM | Report abuse

People are so sure that Obama is going to win they have already started posting tributes to his Presidency
http://www.youtube.com/watch?v=SeAff-sOBec

Watch what the Cameras and Mics didnt show you during the second debate. The F word Shouted in the Debate Hall
http://www.youtube.com/watch?v=YA3xIEes6Q4

Posted by: pastor123 | October 10, 2008 2:23 PM | Report abuse

How many of you read the small business "plan"?


I did. I doubt three of you have.

Posted by: cintronlourdes | October 10, 2008 2:21 PM | Report abuse

McCain is a done deal, It over for him. He should try to leave this campaign with some dignity. He was the wrong candidate all along, no matter how many RNC puppet endorsements he got. It seems according to a new poll People preffer Huckabee/Palin08 4 to 1 Over McCain/Palin08. Thats what the RNC gets for Rigging the primary, and not letting the stronger candidate win. They wanted a weaker candadite because McCain would be a puppet. Here is the poll http://www.mccanes.com

In a funny twist, right before McCains horrible debate preformance. Huckabee was named Featured Debator of the year by watchdebate.com Pretty ironic huh. http://www.watchdebate.com

Posted by: pastor123 | October 10, 2008 2:16 PM | Report abuse

You people are impossible.

You should go and read the "plan".

Just for a taste:

"Create New Small Business Health Tax Credit: Barack Obama will exempt small businesses from
any requirement to offer health insurance to their employees or contribute on their behalf. Instead, he
will give small businesses new incentives to provide health care with a Small Business Health Tax
Credit. The Obama Small Business Health Tax Credit will provide a refundable credit of up to 50
percent on premiums paid by small businesses on behalf of their employees and to small businesses with
no employees."

Double speak.

First, small business will be exempt from "ANY [ANY!]requirement to offer health insurance to their employees or contribute on their behalf..."

and then..."he
will give small businesses new incentives to provide health care..."

If you first tell me that i'm under no obligation to pay ANYTHING towards health insurance, why on earth will i agree to pay 50% of it? Even if the gov takes care of the other half, i'm stuck with the other half. Of course i will not do it.

It's all campaigning double talk. And you people fall over yourselves..."excellent idea".

IDIOTS.

Posted by: cintronlourdes | October 10, 2008 2:11 PM | Report abuse

Posted by: toritto | October 10, 2008 2:03 PM | Report abuse

The Facts!!!!!!!!!!!!!!!! read!!!!!!!!!!
· Is Mr. Obama a Muslim?

Mr. Obama has repeatedly denied being a Muslim and has stated at numerous primary events that he is a Christian and “loves Christ”. However, as you will note further on these facts and letter from the Editor, his association and support for Muslim’s is truly unclear.

· Did Mr. Obama fail to hold his hand over his heart at a recent democratic event where the National Anthem was played?

Yes, during a recent democratic hopeful debate involving Mr. Obama, Senator Clinton, Gov Richardson, and Ruth Harkin he was photographed failing to show the flag of the U.S. respect by holding his hand over his heart for the playing of the National Anthem. Click here for photo.

· What is Mr. Obama’s race?

Mr. Obama is bi-racial, his father is a black Muslim and his mother is white. However, in most of his activities, speeches, and a myriad of voting patterns he votes primarily as a black centric man.

· Is Mr. Obama “Pro Life or Pro Choice”

Mr. Obama is definitely Pro Choice. He is so pro choice that during his short tenure as the Illinois State Senator he has voted in opposition to several bills aimed at stopping partial birth abortions or live fetuses. For example, Illinois has been wrestling with the Born Alive Infants Bill.

For a complete document with factual examples of Mr. Obama’s voting history please read here

· Who is Raila Odinga and how is Mr. Obama connected to him?

Raila Odinga is the Muslim extremist who recently lost the Kenyan Presidential election to a Christian. Raila is a “paternal cousin” to Mr. Obama and has visited with him in both Illinois and Kenya.

· Who is Abongo “Roy” Obama?

Abongo is Barack’s brother who recently preaches that the “Black man must liberate himself from the poisons of European cultures and western values”

· What exactly is Mr. Obama’s religion?

Mr. Obama belong’s to the Trinity United Church of Christ in Chicago, Illinois. The Church is primarily an African American congregation dedicated to Christian principles with a twist of ALSO pursuing Black ideals and African principles. The following text was sourced directly from Trinity’s website and can be verified by clicking on this link. A video aired on Hannity and Colmes can also be viewed here.


“We are a congregation which is Unashamedly Black and Unapologetically Christian... Our roots in the Black religious experience and tradition are deep, lasting and permanent. We are an African people, and remain "true to our native land," the mother continent, the cradle of civilization. God has superintended our pilgrimage through the days of slavery, the days of segregation, and the long night of racism. It is God who gives us the strength and courage to continuously address injustice as a people, and as a congregation. We constantly affirm our trust in God through cultural expression of a Black worship service and ministries which address the Black Community.

The Pastor as well as the membership of Trinity United Church of Christ is committed to a 10-point Vision:

1. A congregation committed to ADORATION.

2. A congregation preaching SALVATION.

3. A congregation actively seeking RECONCILIATION.

4. A congregation with a non-negotiable COMMITMENT TO AFRICA.

5. A congregation committed to BIBLICAL EDUCATION.

6. A congregation committed to CULTURAL EDUCATION.

7. A congregation committed to the HISTORICAL EDUCATION OF AFRICAN PEOPLE IN DIASPORA.

8. A congregation committed to LIBERATION.

9. A congregation committed to RESTORATION.

10. A congregation working towards ECONOMIC PARITY.”

Posted by: ginashank | October 10, 2008 1:59 PM | Report abuse

Dow will break 8,000 today.

We are witnessing with our own eyes, up close and personal, the slow motion impoverishment of America.

:-(

Posted by: toritto | October 10, 2008 1:58 PM | Report abuse

What a bright guy.
This will help get the economy going again.

Posted by: mtobias1 | October 10, 2008 1:52 PM | Report abuse

If Obama wants to 'rescue small businesses', a nice start would be for him to NOT raise their taxes as his current economic plan would do.

And, if he doesn't raise their taxes, then guess whose taxes WILL be raised to pay for all his programs?

Say hello to Obama's "95% of American taxpayers"......

Posted by: dbw1 | October 10, 2008 1:52 PM | Report abuse

its the free lending that got us here loans given to those who had no credit . a loan isnt a rite and doing away with the safty net let people who had risk get loans i say too bad the risk should be with those who singnd on the dotted line not with those who have never defalted on loans or stockholders and retirees

Posted by: getsix1 | October 10, 2008 1:44 PM | Report abuse

Democrats for John McCain and Sarah Palin in 2008

Posted by: hclark1 | October 10, 2008 1:43 PM | Report abuse

Obama plan is a constructive start. The only way out of this crisis is to start rewarding work and productive capital again instead of leveraged capital behind which, as we are finding out, is thin air.

By relieving the tax burden on workers and PRODUCTIVE capital and addressing the huge inefficiencies in govmt, education and healthcare, we can get out of this crisis. You can't "repair" Wall Street by tinkering with "rescue" plans focused only on the money lenders. A healthy Wall Street needs jobs/work/productive activity to sustain it. Obama's plan is the sensible first step. The next step should be a 10% cutback in government at all levels (like the private sector does routinely) to release investment $ and talent into the private sector. The root of this problem is that are current system is not rewarding productive work and productive use of capital to create REAL WEALTH.

Posted by: cmnsns | October 10, 2008 1:26 PM | Report abuse

Obama plan is a constructive start. The only way out of this crisis is to start rewarding work and productive capital again instead of leveraged capital behind which, as we are finding out, is thin air.

By relieving the tax burden on workers and PRODUCTIVE capital and addressing the huge inefficiencies in govmt, education and healthcare, we can get out of this crisis. You can't "repair" Wall Street by tinkering with "rescue" plans focused only on the money lenders. A healthy Wall Street needs jobs/work/productive activity to sustain it. Obama's plan is the sensible first step. The next step should be a 10% cutback in government at all levels (like the private sector does routinely) to release investment $ and talent into the private sector. The root of this problem is that are current system is not rewarding productive work and productive use of capital to create REAL WEALTH.

Posted by: cmnsns | October 10, 2008 1:26 PM | Report abuse

Not just the DOW, but the world's stock exchanges are in meltdown, loosing 12-20% just this week. Its impossible to believe that some poor people in the US getting unaffordable mortages are responsible for a worldwide economic recession. Even if this was the first domino, there have been many other dominos in the banking system where checks and balanaces could have been applied with appropriate regulation.

The real culprit is America's weakening middleclass. Our jobs have been moving overseas....union jobs in the 80s, non-union jobs in the 90s, white-collar jobs since 2000. Meanwhile, our real buying power has been weakened due to fast rising costs on healthcare, oil and education that way outpace inflation. Big Corporations have re-invested most in other countries. Even dividends for the rich are re-invested largely in foreign shores.

That is the real cause of the economic melt-down, the hi priced mortages were just the last straw.

Since America led the meltdown, America needs to lead the worldwide recovery. OBAMA/BIDEN GET IT.
1. strengthen the middleclass NOW with new jobs, tax cuts, cheaper healthcare
2. strengthen America in the future with new educational opportunities and alternative energy.

I don't care if they thrown in a few Socialist programs to get us out of this mess. Once we recover, we can get government right-sized again, just by voting.

Posted by: YoungAtheart | October 10, 2008 1:17 PM | Report abuse

so who is going to be able to eat out after this beating by wall steet after this youll be lucky get the dollar meal at mcdonalds that is if you have a dollar left the dems this is a joke they havent even stoped the thing that got us here they did nothing to stop the easy credit for people who dont have any no won with money will back the banks untill this is taken care

Posted by: getsix1 | October 10, 2008 1:17 PM | Report abuse

....Lord send down some angles..

And they better have guns...

...because everyone's crazy down here

On everyone's drugs...

Casinos, pornos, stock shows where white folks go to die...

bums push carts, crack-head squirrels, and birds too drunk to fly..

And they send down some astronauts tostudy our bones..

Through the miles of garbage,
Beneath all the junk that we owned....

Carbon dating beer cans, condoms and twinkie wrappers....

We were something beautiful, baby. What the hell happened?

If you you were worth it,
They'd skin you, too, for new tennis shoes,
Or a couch that fits the motif of the living room
And doesn't clash with your business suits!

I wanna be in a museum, stuffed and in a realistic position,
Like I'm hunting, calling someone, or buying something...

Way too busy to look up and see what was coming....

I want my bones kept next to
Someone of cultural significance,
Like Fonzie, or William Shatner...

Ha-ha, yeah,
Someone famous like Gilbert Gottfried
Or the dog from Frasier...


That caveman they found,
He was a punk. I knew him in high school...

-"Elephant bones" by That Handsome Devil

Posted by: Independent4tw | October 10, 2008 1:15 PM | Report abuse

Great Idea teddyr but the operative word is "experts"Get Buffett, Clinton, Bloomberg and other experts to draw up a bold plan who will also campaign on Obama's behalf for a global economic recovery program.
They started all this both Dems and republicans.
Please read the following most of whih came from this paper and most of which neither canidate has spoken of.

Read the following and realize that this was caused by the senate ,congress and President Clinton back in 1999.

Not one report that I have seen on TV has made mention of this.

Why don'y you guys do a bit of research andThe Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation (FDIC) in the United States and included banking reforms, some of which were designed to control speculation.[citation needed] Some provisions such as Regulation Q that allowed the Federal Reserve to regulate interest rates in savings accounts were repealed by the Depository Institutions Deregulation and Monetary Control Act of 1980. Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999 by the Gramm-Leach-Bliley Act signed by President Bill Clinton.[1][2]

The ‘big Democrat’ Biden votes in favor of the corporate greed of Banks, and McCain didn’t even bother to show up for the vote.



Washington Post
By Robert J. Samuelson
Wednesday, September 17, 2008; Page A19

Wall Street as we know it is kaput. It is not just that Merrill Lynch agreed to be purchased by Bank of America or that the legendary investment bank Lehman Brothers filed for bankruptcy or that the insurance giant AIG is floundering. It is not even that these events followed the failure of the investment bank Bear Stearns or the government's takeover of Fannie Mae and Freddie Mac, the largest mortgage lenders. What's really happened is that Wall Street's business model has collapsed.

Greed and fear, which routinely govern financial markets, have seeded this global crisis. Just when it will end isn't clear. What is clear is that its origins lie in the ways that Wall Street -- the giant investment houses, brokerage firms, hedge funds and "private equity" firms -- has changed since 1980. Its present business model has three basic components.

First, financial firms have moved beyond their traditional roles as advisers and intermediaries. Once, major investment banks such as Goldman Sachs and Lehman worked mainly for their clients. They traded stocks and bonds for major institutional investors (insurance companies, pension funds, mutual funds). They raised capital for companies by underwriting -- selling -- new stocks and bonds for the firms. They provided advice to corporate clients on mergers, acquisitions and spinoffs. All these services earned fees.
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Now, most financial firms also invest for themselves. They use partners' or shareholders' money to place bets on stocks, bonds and other securities -- so-called "principal transactions." Merrill and other retail brokers, which once served individual clients, have ventured into investment banking. So have some commercial banks that were barred from doing so until the repeal in 1999 of the Glass-Steagall Act of 1933.

Second, Wall Street's compensation is heavily skewed toward annual bonuses, reflecting the profits traders and managers earned in the year. Despite lavish base salaries, bonuses dominate. Managing directors with 15 years' experience can receive bonuses five to 10 times their base salaries of $200,000 to $300,000.

Finally, investment banks rely heavily on borrowed money, called "leverage" in financial lingo. Lehman was typical. In late 2007, it held almost $700 billion in stocks, bonds and other securities. Meanwhile, its shareholders' investment (equity) was about $23 billion. All the rest was supported by borrowings. The "leverage ratio" was 30 to 1.

Leverage can create huge windfalls. Suppose you buy a stock for $100. It goes to $110. You made 10 percent, a decent return. Now suppose you borrowed $90 of the $100. If the price rises to $101, you've made 10 percent on your $10 investment. (Technically, the price has to exceed $101 slightly to cover interest payments.) If it goes to $110, you've doubled your money. Wow.

Once assembled, these components created a manic machine for gambling. Traders and money managers had huge incentives to do whatever would increase short-term profits. Dubious mortgages were packaged into bonds, sold and traded. Investment houses had huge incentives to increase leverage. While the boom continued, government remained aloof. Congress resisted tougher regulation for Fannie and Freddie and permitted them to run leverage ratios that, by plausible calculations, exceeded 60 to 1.

It wasn't that Wall Street's leaders deceived customers or lenders into taking risks that were known to be hazardous. Instead, they concluded that risks were low or nonexistent. They fooled themselves, because the short-term rewards blinded them to the long-term dangers. Inevitably, these surfaced. Mortgages went bad. The powerful logic of high leverage went into reverse. Losses eroded firms' tiny capital bases, raising doubts about their survival. This year, Lehman lost nearly $8 billion in "principal transactions." Otherwise, it was profitable.

How Wall Street restructures itself is as yet unclear. Companies need more capital. Merrill went to Bank of America because commercial banks have lower leverage (about 10 to 1). It seems likely that many thinly capitalized hedge funds will be forced to reduce leverage. Ditto for "private equity" firms. In time, all this may prove beneficial. Financial firms may take fewer stupid and wasteful risks -- at least for a while. Talented and ambitious people may move from finance, where they were attracted by exorbitant pay, into more productive industries.

But the immediate effect may be to damage the rest of the economy. People have already lost their jobs. States and localities, particularly New York City and New Jersey, that depend on Wall Street's profits and payrolls will face further spending cuts. Banks and investment banks may tighten lending standards again and impede any economic recovery. The stock market's swoon may deepen consumers' pessimism, fear and reluctance to spend. There may be more failures of financial firms. It's hard to know, because financial crises resemble wars in one crucial respect: They result from miscalculation.

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/16/AR2008091602877.html?wpisrc=newsletter&wpisrc=newsletter&wpisrc=newsletter



Attachments: Text version of this message. (6KB)

Posted by: openurmind | October 10, 2008 1:11 PM | Report abuse

Does this mean he is cutting taxes for business now?

Does this mean that the tax raise for those who earn more than $250k as a small business owner are going to be given a tax cut???

Is he coping McCain now???

I thought he was against this???

Posted by: dave44 | October 10, 2008 1:10 PM | Report abuse

I hope Obama will ignore McCain's petty little sniping and concentrate on delivering a major economic recovery plan on the scale of the New Deal, Great Society and the Marshall Plan. The world needs big ideas coming from America. Obama has the opportunity to become a great leader. GWBush had the same opportunity after 9-11 but he totally blew it. McCain doesn't have the stuff and never will. Obama has the right stuff and he needs to start becoming our leader immediately. Get Buffett, Clinton, Bloomberg and other experts to draw up a bold plan who will also campaign on Obama's behalf for a global economic recovery program.

Posted by: TeddyRoosevelt | October 10, 2008 12:31 PM | Report abuse

Good idea Obama. It is a small but popular plan to help small businesses (usually the first to drop employees) who would be hurt the most in the business world by the credit crunch.

Obama's $5 billion plan is way more cost effective and palable than McCain's $300 billion bailout plan of bad mortgage lenders.

Posted by: AJ2008 | October 10, 2008 12:08 PM | Report abuse

Dow down 470 points.

You are witnessing with your own eyes the slow motion impoverishment of America.

:-(

Posted by: toritto | October 10, 2008 11:58 AM | Report abuse


TARGETING OF AMERICANS BY GOV'T AGENCIES
A ROOT CAUSE OF WALL STREET MELTDOWN?

Once again, Congress rushed through emergency legislation -- socializing the capital markets, ceding effective control of the economy to the government.

Officials continue to blame lax lending policies on the part of the mortgage industry for spawning this crisis.

But were lenders ORDERED to offer "easy credit" to people "targeted" by government agencies?

Is government "extrajudicial targeting" of American citizens a root cause of the mortgage meltdown that spawned the broader financial crisis?

And is there a disinformation campaign underway to blame the Democrats, instead of ideologues who have hijacked federal agencies as their tool of "social engineering."

Consider this:

http://www.nowpublic.com/world/targeting-u-s-citizens-govt-agencies-root-cause-wall-street-financial-crisis OR
members.nowpublic.com/scrivener

Posted by: scrivener50 | October 10, 2008 11:50 AM | Report abuse

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