Congress is about to whoop through a massive expansion of EX-IM Bank lending authority. So why do exporters need Federal loans to fund exports? After all, there are many banks just dying to lend money to credit worthy borrowers. Ah, that's the rub, isn't it? Businesses want to sell products to customers who real banks won't touch with a ten foot pole. And to do that they need a lender who is stupid. Very stupid. Enter Uncle Sugar, stage left. This Federal bipartisan commitment to putting powerful interests ahead of the common interest is one more reason we need to break it up, break it all up.
WSJ: The Export Subsidy Boomerang. “If you thought Fannie Mae, Freddie Mac and Solyndra would teach Congress a lesson about politicized credit, think again. The federal Export-Import Bank is up for reauthorization, and the only question seems to be how much more taxpayer money Washington wants to put at risk. If the GOP wants to have a principled battle about fiscal waste and market distortions, this is a good one. . . . Business lobbies claim the country can’t afford to let the bank expire or—gasp—private banks like Citigroup and J.P. Morgan would have to do more trade financing. California Republican Gary Miller, supported by fellow Republican Spencer Bachus, Democrat Barney Frank and others, has a bill pending in the House to prolong the bank’s life through 2015 and raise its lending cap to $160 billion from $100 billion. The House Financial Services Committee waved the bill through in a voice vote last year and it’s likely to get a floor vote this month.”
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