Article Tags : bush tax cuts . Entrepreneurs . finance . how to get the money . Investment Banking . Obama . obama tax deal . private equity . Small business . tax . wall street
Beware: Do not rejoice so quickly. Obama has little choice in making a political gesture to the center to save his Presidency.
The Problem Remains:
The problem for entrepreneurs, small businesses and the country is that they need private equity to get off the ground and create the needed jobs. Two thirds of job creation comes from small businesses.
Banks will not finance small risky businesses.
The Law Of Opposites Remains In Effect
It is my contention from the beginning of the financial crisis that we made the exact opposite moves of what we should have done to save the economy and financial system. Instead of saving the Big Banks, Investment Banking Firms (Wall Street) and GM, we should have guaranteed and gotten private equity into the marketplace on all levels – banks, investment banks, and, most importantly, money going into small businesses and real estate.
This would have created a de facto deleveraging of the economy, avoided huge government bailouts that have used tax payer money anyway.
The Abandonment Of The Entrepreneur/Small Business Continues
Instead, with ObamaCare, Big Government, artificially low interest rates, Freddie Mac and Fannie Mae, enormous deficits and debt, we still have not focused on the entrepreneurial base.
There is much jubilance for growth and stock prices but the fundamental entrepreneurial base is still out in the cold.
Private Equity Needed Now
Unless we get private equity investing with confidence and government spending down, we will be facing the same problems and ceding our economic might to China and other Asian countries and India.
The Importance Of Understanding How To Raise The Money
Never before has the importance of knowing how to get the money – raise it through investors, sales, barter – been more important.
Stay tuned. That’s what StepsTo.com is all about: How To Get The Money.