The Payroll Protection Program

Big banks are being criticized for favoring big businesses over small ones in dishing out PPP money. My response: DUH? What the hell did you expect. I have borrowed over $60 million for various deals I have been involved in. I know the banking industry well. During the 2008 crisis, I hated bankers and the banking industry. They got propped up through TARP money, retroactive tax breaks and low interest rates, while risk takers with gonads got screwed.

In this instance, how can you blame the banks? Government give away programs always have unintended consequences for those who write these stupid bills.Conservatives always see the unintended consequences, which is why we hate government largess. The Kumbaya crowd ( the non-thinking crowd) is always shocked at these consequences.

If you are a bank, of course you are going to favor your best customers! Under PPP, it takes just as long, likely a lot longer to process a $60,000 loan than it does a 20 million loan. Plus the government is guaranteeing the loan. So why not gobble up all the low hanging fruit first before the money runs out. The administrative costs of a small loan is cost prohibitive, even when it is guaranteed by Uncle Sugar. Again, what the hell did you dumb asses expect?

So here we have another example of the cycle of government stupidity. The government creates an economic nightmare by shutting down the economy. In order to fix the problem it created, it creates another set of problems. And so it goes, and goes and goes……….