Originally Posted by dub CRISP
You don't seem to have a firm grasp of economic problems that we are facing right now. We have tons of people who want to work but credit is not available because banks are sitting on excess reserves and not lending because of uncertainty in the market place.
People can't hire people because they start businesses because they can't get a loan because banks won't lend because they don't trust people with their money after the sub-prime mortgage crisis.
People who are unemployed collecting a government check are mostly loathe to do so. They would much rather be working and making their own money but they can't.
Banks were not lending in 08/09 due to massive margin calls ( that ate up cash because unwinding the position would be even more costly) to fixed income desks holding an unhealthy amount of cdo's, cmo, and other collateralized debt.
Banks were given a capital injection and most paid it back with interest. Banks started lending again but not as outlandishly as before.
If banks don't want to lend why did Wells fargo bring me in to interview for a business credit analyst position that evolves into a Business Relationship Manager? They are lending so much in my area they need more people to work in that department. I didn't take the job because after getting all the information it just wasn't what I was looking for.
There are a **** load of jobs out there, though most of them are being filled with HB-1's because people either don't have the skills or don't want to work.
A family friend of mine owns a comercial garage door installation company he has been trying to hire people for the past 18 months at $40 an hour. This same story is repeated across the country a plethora of times.
Why work when you can get:
99 weeks of UE ( then go on ssdi)
federal section 8 housing vouchers ( the section 8 buildings in seattle are straight up nice condos)
a free phone with 250 minutes and text messages
free lunch for your kids at school
Not to mention donations from private charities