Should the Government Intervene to Assist in Companies Having Access To Capital?

1:58 AM June 16, 2010

So here is the million dollar question: Should the government intervene in order to get better Access to Capital? This topic continues to be a point of discussion for all size of companies. The companies that need the capital and cannot get it complain that money is too tight. The companies that can access capital suggest that things are loosening up.

Maybe the banks are now using better due diligence to offer loans, and the companies that qualify are getting approved. Too many loans were written to companies that should not have gotten a loan, and now they are defaulting.

The people are complaining to their Congressmen and Senators and they are feeling the pressure. If the government steps in to stimulate the economy by encouraging easier access to capital, then aren't we setting ourselves up for further problems? I think we should take this time as a cleansing period. The companies that don't qualify now will get stronger by not being too leveraged.

We already have low interest rates, we have the additional bonus depreciation thru stimulus, isnt this enough? Now it is time to make prudent business decisions and run our businessness without piling on too much debt.

 

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