Many of us have heard the stories about banks not making wise decisions in making loans and because they were, “too big to fail”. We had to bail them out.

A lot of this comes from people loaning money that is not really theirs.

But what if we allowed ordinary Americans like you and me to loan money to the cash strapped small business men of America.

You might ask where we would get the money to make such loans.

What if the government allowed us to take the money from our 401k plans to fund these loans.

I am betting that you and I would make better decisions on whom to loan our money to.

And then the profits from these efforts could be fed back into our 401k plans (again this should be done tax free).

We might need/want help from lending organizations to help with the paper work and a small fee could be paid for this help.

And who knows, maybe a number of us might choose to start our own small business (which might become a family legacy).

Of course you and I are not too big to fail. And that is a good thing. We should not expect government to bail us out if we make a poor choice on who we lend our money to. But I am betting that average American citizens will do a better job on deciding who to loan money too.

P.S.

The natural law of all business/organizations is as they get bigger, they become fat and lazy. Small businesses have to make good decisions in order to survive, because they are lean and hunger to stay alive.

This entry was posted on Tuesday, January 3rd, 2012 at 4:56 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.