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Bernanke and the Ease of a Merchant Cash Advance
Last week Fed Chairman Bernard Bernanke gave a speech at Jackson Hole, WY., in which he said that the Fed will not take extreme action to spur the economy. That means no more quantitative easing, and continued low interest rates. Some were disappointed, others were pleased.
While the Fed is independent of the government, that doesn’t mean it isn’t influenced by it. The Fed has twelve voting members who serve 14-year terms, and are chosen by private-sector finance executives or are nominated by the president and are subject to Senate approval. Since those who offer business capital loans have a lot to lose from inflation, it makes sense that the Fed doesn’t want to spurn them, just so the poor can leverage their way out of huge debts they owe from a merchant cash advance.
Liberal-leaning economists, known as doves, advocate faster inflation to make up for the weak inflation over the past couple of years. Some doves want the Fed to buy up financial assets, which means printing more money. But unless something terrible happens in the markets, chances are it will be just as Bernanke said, and just as easy as it has been to get a merchant cash advance as it has been.
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Posted on: Monday, September 5th, 2011 at 8:44 am
Posted in: Merchant Cash Advance
Tags: business capital loan(s), merchant cash advance, working capital loan