How bad is this economy going to get?

[Horn6721]

Mus
If I read your link right it seems BOA has guidelines that limit who they will take
but
"President Donald Trump’s Paycheck Protection Program (PPP) through the Department of Treasury and Small Business Administration has already on its first day pushed out more than $620 million to small businesses nationwide mostly through community banks.

A senior Treasury Department official told Breitbart News on Friday morning that as of 10:30 a.m. eastern time, a total of 1,652 loans were given out through 239 different banks for a total of $628,371,561. Most of the big banks like JP Morgan Chase, Wells Fargo, and Citigroup did not have programs online—only Bank of America did—by this time, so this means community banks nationwide are the ones stepping up to push the money out to small businesses affected by the coronavirus crisis."

/www.breitbart.com/economy/2020/04/03/exclusive-main-street-rescue-trump-admin-pushes-out-hundreds-of-millions-in-small-business-loans-on-first-day/

UPDATE 11:09 a.m. ET:

As of 11 a.m. Eastern Time, the number of loans given out has surged to 1,926 loans through now 245 banks—again, mostly community banks—for a total of now $756,985,761, per a senior Treasury Department official.
Now Over 800 million
Pretty impressive
Seems like it is working as expected.

 

[Musburger1]

Mus
If I read your link right it seems BOA has guidelines that limit who they will take
but
"President Donald Trump’s Paycheck Protection Program (PPP) through the Department of Treasury and Small Business Administration has already on its first day pushed out more than $620 million to small businesses nationwide mostly through community banks.

A senior Treasury Department official told Breitbart News on Friday morning that as of 10:30 a.m. eastern time, a total of 1,652 loans were given out through 239 different banks for a total of $628,371,561. Most of the big banks like JP Morgan Chase, Wells Fargo, and Citigroup did not have programs online—only Bank of America did—by this time, so this means community banks nationwide are the ones stepping up to push the money out to small businesses affected by the coronavirus crisis."

/www.breitbart.com/economy/2020/04/03/exclusive-main-street-rescue-trump-admin-pushes-out-hundreds-of-millions-in-small-business-loans-on-first-day/

UPDATE 11:09 a.m. ET:

As of 11 a.m. Eastern Time, the number of loans given out has surged to 1,926 loans through now 245 banks—again, mostly community banks—for a total of now $756,985,761, per a senior Treasury Department official.
Now Over 800 million
Pretty impressive
Seems like it is working as expected.

$620 million is roughly 0.2% of $350 billion. It’s basically nothing. Time will tell how it’s working.

 

[iatrogenic]

Mnuchin said everything is up and running.
Millions Of Small Businesses Stunned To Learn They Are Not Eligible For Bailout Loans

well, maybe not what was expected.

Obviously, go to a different bank. But don't let that interfere with your doom and gloom, Schleprock.

 

[iatrogenic]

$620 million is roughly 0.2% of $350 billion. It’s basically nothing. Time will tell how it’s working.

$620 million in 3 hours is "basically nothing". Got it.

 

[Horn6721]

Mus
Use common sense this is the first hours of the first day.
Geesh

 

[Musburger1]

Obviously, go to a different bank. But don't let that interfere with your doom and gloom, Schleprock.

Obviously you didn’t read the article. Of course, not knowing what the hell you are talking about has never stopped you from speaking.

 

[SabreHorn]

Trump will need to study Reagan's handling of the SBA, or he will blow a gasket. SBA is slow, lazy, ineffective, a bureaucratic nightmare, that does very little good for those they are intended to serve.

One year, Reagan served notice on SBA offices, "here's your money, your bonus, if not your job, is dependent on you finding good loans and getting them booked in the next four months". SBA offices were calling banks begging for their crappy loans.

Turn the page to hurricane programs a decade ago, and SBA hired semi-qualified rejects to draw a paycheck (some drawing "two"), and that was a total cluster.

I can see Trump trying to privatize the SBA to make it a functioning part of the recovery.

 

[SabreHorn]

Obviously, go to a different bank.

It won't be the bank, but rather the SBA hacks assigned to your area.

 

[Horn6721]

Well if the amount of loans given out by banks in the first few hours ( over a billion now) the SBA hacks are giving green lights.

 

[SabreHorn]

I'm hoping Trump has told SBA everything is approved to eliminate the backlog and the under the table negotiations. In other words, put it in the hands of the banks not the bureaucrats that can't get a job at a bank.

 

[Musburger1]

The rules are written such that if you have made no loans, but merely used the bank to make deposits, don’t write checks, you don’t qualify. Right off the bat, several small businesses aren’t qualified. And if they didn’t meet the criteria by February 15, then it is too late.

 

[iatrogenic]

Obviously you didn’t read the article. Of course, not knowing what the hell you are talking about has never stopped you from speaking.

I did read the article. It refers to B of A bank policies, not every bank's policies. Maybe you should read the article.

 

[iatrogenic]

The rules are written such that if you have made no loans, but merely used the bank to make deposits, you don’t qualify. Right off the bat, several small businesses aren’t qualified. And if they didn’t meet the criteria by February 15, then it is too late.

That is a B of A Bank policy. The law states nothing about that rule. I've read it too, many times already.

 

[Musburger1]

That is a Chase Bank policy. The law states nothing about that rule. I've read it too, many times already.

What is Wells Fargo’s Policy? Nobody seems to know. Interesting that there is no uniform policy for a specific federally administrated program.

 

[iatrogenic]

I know it's killing you that the program is working. I'm a little surprised myself since the feds are running it.

 

[iatrogenic]

It won't be the bank, but rather the SBA hacks assigned to your area.

The problem mentioned in the article was a B Of A problem.

 

[AC]

I'm hoping Trump has told SBA everything is approved to eliminate the backlog and the under the table negotiations. In other words, put it in the hands of the banks not the bureaucrats that can't get a job at a bank.

Reminds me of the SBA “officer” I had at a mtg in 2005 or so. He said stammering:
“If you have a job now keep your job. Don’t start a business if you already have a job”.

Clueless. Never talked to SBA again.

 

[SabreHorn]

No way in hell this thing works if they allow Wells Fargo in. The first chapter of Wells Fargo manual is "Making your officers and employees believe your lies and not know you are lying"; then "Training your employees to lie without their fellow employees know you are lying"; followed by, "How to make your customer believe your lies"

 

[Monahorns]

Some frank talk. For better or for worse, this crisis will lead to a massive expansion of the government. And when government expands, it rarely contracts back when the crisis is over.

Yes Chop, and none of us have really protested or attempted to hold the government accountable. Most people have welcomed it and acted as government lapdogs.

 

[Monahorns]

Excuse me, but there was an enormous contraction of government
After WW II

But it didn't go back to where it was pre-WW2. The "ratchet effect" is a historically observable phenomenon.

 

[SabreHorn]

AC,

There used to be a retired bird colonel in the downtown SBA office located in Allen Center. Charlie Lawrence was good people and a man of his word. If Charlie liked a deal, everyone at the SBA saluted it. Haven't encountered a person of that caliber in SBA since Charlie retired.

 

[Musburger1]

Oil news. The ball is now in Trump's court.

Putin Responds To Trump Oil Gambit: 10MM Production Cut "Possible" But US Needs To Join

The Russian president said that he had spoken with US President Trump saying "we are all worried about the situation" and that he is "ready to act with the US on oil markets" with 10mmb/d in oil production needed to be cut, adding that cuts must be taken from Q1 2020 levels which was a jab at Saudi Arabia which is hoping to "cut" by 3 million b/d to go back to where it was in February. And by we, he meant the "we" that includes the US, because as he explained "joint actions" are required on oil markets, i.e., shale too.

Observing that the situation on global energy markets remains difficult and that demand is falling (by 26mmb/d according to Goldman), Putin said that he wants "long-term stability" of the oil market, and that he is comfortable with $42 oil.

At this point Russia's energy minister Novak chimed in and explained what it would take to get such a cut: speaking to Putin, the Russian energy minister said it is necessary to cut oil production for everybody, including Saudi Arabia and the US, and that output should be cut for the next few months and gradually recovered thereafter.

Novak also said that Saudis are still negatively influencing oil market, and that oil storage could be filled for next 1.5 to 2 months only.

Finally, there was some speculation that Russia would not be present at next week's R-OPEC conference, so Novak defused any confusion, by confirming that the meeting is set for April 6th.​

 

[SabreHorn]

WWII saw new industries like synthetic rubber and other polymers which would expand hugely post war. Synthetic rubber was here to stay and BF Goodrich, Goodyear, TexasUS Chemical continued with Neches Butane being created to make butadiene for the others.

Sandia & eventually NASA experimenting with polyurethane & polypropolene created thousands of jobs in revamped plants. My favorite was the day my dad came home talking about these guys from Houston who had been in the plant to use Goodrich polymers to build a plastic ice chest. They made four ice chests and set a pickup truck with one ice chest under each tire, then left, 3-4 weeks later the ice chests were still undamaged. Their first sale was to Lone Star beer. Paul Jorgensen was the local distributor, and Igloo guys made sure my dad got two of the first ones made to keep his Pearl beer cold on camping trips. Their second sale was to Pearl beer.

Will new industries spring up from this fiasco as happened after WWII?

 

[Musburger1]

Will new idustries spring up from this fiasco as happened after WWII?

There will be a paradigm shift for sure. Working at home will continue to rise. Big Ag may take a hit as we know it and be largely replaced by a combination of veritical indoor farms and individuals with backyard gardens. In some ways, we will return to the distant past and in other ways technologies (blockchain, etc.) will be used to enter the new era. The powers that be that hold all the cards, (Big pharma, Big banks, Big Ag, Big oil) will resist change with all their might and influence. As will big government. Should be much conflict during the transition period.

 

[Chop]

No way in hell this thing works if they allow Wells Fargo in. The first chapter of Wells Fargo manual is "Making your officers and employees believe your lies and not know you are lying"; then "Training your employees to lie without their fellow employees know you are lying"; followed by, "How to make your customer believe your lies"

Wells Fargo has a recent history of opening huge numbers of fake accounts and other shocking examples of blatant fraud on a large scale. IMHO, the SBA should cut Wells Fargo out of the picture. Glad to hear the smaller banks are getting most of this action thus far. I tend to like them more than the big boys of the banking industry.

 

[SabreHorn]

Chop,

No offense, but Wells Fargo has been doing **** like that since I was introduced to them in the early 80s. The fake account thing is the least egregious thing they done. Perhaps the worst is they lie to their officers and employees during training and about how their procedures work. I can't blame a manager in Tyler for following the company book when it's all they know, and questioning it will get them fired.

 

[Chop]

Working at home will continue to rise.

This part is overdue, virus or no virus. A large % of office workers can do their work at home just fine using technology. With this shift, they'll stop clogging up the roads on often long commutes. The push back = overly controlling supervisors. If you don't trust an employee to actually get the job done at home/off-site and not just goof off all day, you probably made a mis-hire. Also, evaluate the employee by performance, not whether he or she is always at the office and looks busy.

 

[Chop]

Chop,

No offense, but Wells Fargo has been doing **** like that since I was introduced to them in the early 80s. The fake account thing is the least egregious thing they done. Perhaps the worst is they lie to their officers and employees during training and about how their procedures work. I can't blame a manager in Tyler for following the company book when it's all they know, and questioning it will get them fired.

There are plenty of shady banks. Wells Fargo is arguably the shadiest.

 

[AC]

There are plenty of shady bank. Wells Fargo is arguably the shadiest.

Amega is a Shady Bank. I know for a fact. Joe Swinbank is CEO of Vista Bank just by association that Bank is trash! The Banking Industry really needs an overhaul. They have too much control and they really do hand pick winners and losers.

 

[iatrogenic]

I have an interest in a smaller company with 70 employees. We submitted the documents for a 7 figure PPP loan this morning. It was approved in less than 2 hours and will fund Monday. This was through a smaller bank than B of A, Chase or Amegy. We were the first in line at our bank by design since we agreed to be the guinea pig. Smooth as silk. Never seen anything like it. Tuesday, we start spending the money.