Jun

6

The belief that the banking system is the primary driver
of employment is an illusion that only the people who never held a
payables party could believe in:

"We thought we were in recovery coming out of the Depression too and I think some of that was an illusion. The– to your point about small business. The biggest problem with small business today is accounts receivable financing. It's not that they need capital finance, they just can't even say it's inventory. And that's not really a banking business. That's vendors who don't feel comfortable financing their customers anymore. So I would say to Brian and to Chairman Bernanke, look at the numbers. The industry, banking industry is shrinking. The non-bank sources of finance, which are by and large big companies don't have the access to commercial paper. They don't have the ability to raise short-term funds themselves– And therefore, they can't finance it on their balance sheet."


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