Liberals Say Recession Behind Us While Small Businesses Go Belly Up

This is from the Liberal Angle Times, a.ka. the Los Angeles Times.  Hence, one needs to have a constant angle-straightener as one reads.

Small-business bankruptcies rise 81% in California
With credit tight and consumers still pinching their pennies, many business owners find they can’t go on. More prime mortgages default in 3rd quarter

By Nathan Olivarez-Giles
December 22, 2009

The Obama administration’s new plan to give a boost to small businesses reflects continued trouble in that sector, which is facing new failures even as much of the nation’s economy is stabilizing. [If you want to tak about a new failure, talk about Barack Obama, then everything else pretty much falls into place.  The problem with the “much of the economy is stabilizing” thesis is that 3/4ths of all jobs in this country come from small businesses, which are obviously getting hammered.  The liberal rationale that we are recovering is part of the reason that we will have a double-dip recession and a jobless recovery.  You can’t fix a problem if you don’t first acknowledge you genuinely have one].

As credit lines have shrunk and consumers have cut back on spending, thousands of small businesses have closed their doors over the last year. The plight of struggling firms has been aggravated by the reluctance of banks to lend money, said Brian Headd, an economist at the Small Business Administration’s office of advocacy
. [Obama demonizes banks even as he claims they have a responsibility.  Well, which is it?  Are they demons selfishly doing their own thing, or are they legitimate and important institutions that have performed an important role in society?  Furthermore, banks say they aren’t lending because Obama has tightened up on them way too much, such that they CAN’T lend.  Bottom line: Obama – through demonizing and regulating – has done nothing but make a bad situation far worse].

“While bankruptcies are up, overall, small-business closures are up even more,” Headd said. [Small businesses have been crying out in agony about everything Obama has done.  ObamaCare will punish them; raising taxes “on the rich” will punish them; cap-and-trade and various other energy taxes and measures will punish them; card check will punish them; hiking up the inheritance tax in 2011 will punish them.  Obama has done nothing to help these businesses and everything to hurt them.  And then we wonder why they’re going extinct].

California has been particularly hard hit. The latest data show small-business bankruptcies up 81% in the state for the 12 months ended Sept. 30, compared with the previous year. Filings nationwide were up 44%, according to the credit analysis firm Equifax Inc. [We were told last year by Obama that this was the worst economy since the Great Depression.  And now small businesses bankruptcies have nearly DOUBLED under his management?  If we were facing the Great Depression last year when small business bankruptcies were up 44%, what are we facing now, when they are 81%].

The actual number of small businesses in trouble is probably higher, experts said, because many owners file for personal bankruptcy rather than seek protection for the business. [Well, that’s just great.  The actual numbers are even worse than twice as bad as they were last year.  Sounds to me like the economy must be doing fine].

Dennis McGoldrick, a bankruptcy lawyer in Torrance, said his clients are all stuck in similar situations — capital is hard to come by, customers are tough to attract and debt is piling up.  [Clearly, Obama’s first full year in office has been a rousing success.  But least these small businesses owners are becoming more like the federal government, with massive debt piling up.  It’s good to be more like the wonderful and marvelous Barack Obama, isn’t it?].

“We can’t keep up,” McGoldrick said. “There’s more people that want to come in every day than I can see.”
[Bankruptcy lawyers: jobs Obama has “created or saved.”].

Cecily McAlpine, who filed for bankruptcy protection for her Cold Stone Creamery franchise this spring, said the experience was humiliating but she had no choice.  [Plan to come back in 2012, Cecily.  Someone who isn’t just a clueless community organizer, and who has an actual idea how a functioning economy works, will be president then].

Receipts at the fledgling Compton ice cream shop plunged dramatically during the recession, and by late 2008 she was paying her employees out of her pocket.

“When the refrigerator died, that was it; I’d just had it,” McAlpine said. “That was the day I broke. I just started throwing stuff away.”

McAlpine recently withdrew her bankruptcy filing after selling all the store equipment and paying off her creditors. She is slowly paying off some back-rent and utility debt, and will officially dissolve her business in the next couple of weeks, she said.

“I still feel scarred and like a loser,” she said. “Even though I’m not in it anymore, it’s still there.” [Yes, but the liquidation companies have jobs that Obama “created or saved.”  And that’s the important thing].

Recognizing the problems of business owners like McAlpine, the Obama administration has proposed using federal stimulus money to help funnel more loans to small businesses. The White House has also asked Congress to eliminate capital gains taxes for one year on new investments in small-business stock, and called for a new tax incentive to encourage small businesses to hire more employees.  [I don’t know if Obama recognizes the problem or not.  What I do know is that funneling more money to the federal government in the form of the Small Business Administration is far from a solution to the problem.  Most small businesses avoid the SBA like a plague, due the political correctness, red tape, byzantine regulations, and DMV atmosphere of the place].

On Dec. 14, Obama called a meeting of executives of Wells Fargo & Co., Citigroup Inc., Bank of America Corp. and nine other large banks, and told them that they owed it to the nation to make more loans to small businesses and help rebuild the economy.  [Obama owes it to the nation to resign and allow the economy to recover by itself.    Aside from that, a) calling in executives to stand hat-in-hand while Obama partly demonizes and partly lectures them is not going to solve anything, particularly when b)  it’s the small community banks that do most of the loaning to small business].

In California, the need is great.  [But the other 49 states are doing just dandy].

Over the last year, the Los Angeles, Riverside/San Bernardino and Sacramento metropolitan areas have led the nation in small-business bankruptcy filings, said Tim Klein, a spokesman for Equifax.  [And what’s really scary about that is that California generally leads the nation as the trendsetter.  And this isn’t a very good trend, is it?].

About 19,000 small businesses filed for bankruptcy in California during the 12 months ended Sept. 2009, up from 10,500 the previous year.  [Like I said, pretty much double under Obama.  I remember Obama promising that unemployment wouldn’t go over 8% if we passed his stimulus that had all these “shovel ready projects.”  But that’s done and gone; now I’m ready to buy Obama’s next lie].

During September alone, 2,229 small businesses filed for protection, up from 1,503 filings in September 2008, the firm reported.  [Well, that’s good.  At least the trend is getting worse.  You can look at the upward sloping bankruptcy graph and convince yourself that it means progress.  Or maybe you can look at it and pretend you’re a mountain climber].

Kathleen March, a bankruptcy lawyer in Los Angeles, said she often pushes her clients to file for personal bankruptcy instead of a business filing because it’s easier
.  [Oh, yeah.  I’d forgot that earlier part about, “The actual number of small businesses in trouble is probably higher, experts said, because many owners file for personal bankruptcy rather than seek protection for the business.”  Scratch that part about “pretty much double.”  It’s actually far worse than “pretty much double,” but we just don’t know how much worse it actually is.

Many people also close down their businesses thinking that will solve their problems, only to find their companies’ debt lives on, March said. [Obamanomics: the gift that keeps on giving and giving].

“The norm is if you’re running a small business, you will have to either cosign or personally guarantee the significant debts,” she said. “The business itself can shut down, but the people cosigned all the debts. So, the individuals are then saddled with these huge debts.” [Yes, but loan collectors count as jobs that have been “saved or created.”].

A client who owned a surf shop was paying for business expenses from the client’s own funds long before filing for personal bankruptcy, she said.

“In this economy, anything that isn’t a necessity is a tough business to be in,” March said. “And the majority of my clients have waited too long to file for bankruptcy and in the process made things worse on themselves financially as a result.” [Well, that’s just great, because we can count on a whole lot more small businesses going belly up as all those other clients who’ve waited start floating with their bellies up.  That’s change you can believe in].

What these business owners really need is a nice sharp tax increase to make them even more profitable.

There.  If the LA Times article comes preset with a sharp leftward angle, a good hard pull to the right ought to straighten it out.

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