| As one watches or listens to the media, they find | | | | my earlier articles, the investment of the future is |
| themselves inundated with information regarding | | | | in new businesses that have not had the chance |
| problems in the economy. Further, most people | | | | to enjoy Wall Street inflated stock values. |
| are aware we must find real solutions to correct | | | | Example would be new start-up businesses |
| the catastrophic condition of the financial system. | | | | designed to endure tough economic times. |
| Yet, as we all can attest, it is easier to identify | | | | Additionally, there are many strong industries. For |
| problems than solutions. Therefore, our | | | | example, clean energy, service businesses, new |
| government and its citizens must identify a | | | | technologies and so forth. |
| clear-cut plan of action to solve the economic | | | | So is there a chance that investors may move |
| crisis. Moreover, the plan must have viability, and, | | | | funds from Wall Street to Main Street and what |
| be free of defective assumptions' and ineffective | | | | impact can such transition of capital have on the |
| practices. | | | | economy? |
| The foremost realization people must embrace is | | | | Well, shifting investors' focus to Main Street |
| the actual problem behind our current catastrophe. | | | | requires a bit of promotion and incentive for |
| Many clamor that the problem is the lost value in | | | | investors to gravitate to small business. The idea |
| the capital markets. The devaluation of the | | | | is to create new high quality business infusions in |
| market is really not the problem; it is a symptom | | | | the form of good debt, equity and guarantees. |
| of a much worse condition. However, the | | | | This will recreate the economy rather than our |
| devaluation of the market is also the solution | | | | government buying up old bad debts and further |
| attempting to emerge. Many people may take | | | | escalating the problem by propping up a bad |
| pause at such a statement. However, the market | | | | business. Beautifully, there is an infrastructure in |
| is just exposing its true value or lack thereof. | | | | place that was established under the 1958 Small |
| Therefore, the object of this article is to bring | | | | Business Investment Company Act. Small |
| into focus the obvious solution, and what's more | | | | Business Investment Companies (SBICs) |
| the solution will be self-evidencing. The devaluation | | | | specifically focus on attracting investors, pooling |
| is caused by a supply glut and investors' realization | | | | investors' money and investing in small businesses. |
| that the prices of the stocks are indeed inflated | | | | The funds are partially guaranteed or financed by |
| and it does not pay to purchase new stocks or | | | | the federal government. Thus, it only appears |
| even hold them. | | | | natural that if our government wishes to use |
| Much like with any product if one does not feel his | | | | government funds to correct the problems in the |
| or her money's worth is contained within the | | | | economy as it has attempted to do with the bad |
| given item (in this case stock), he or she will want | | | | debt bailout of the dilapidated mortgage industry, |
| to find better value. Thus, demand is lowering and | | | | a much more feasible solution is to infuse the |
| supply is remaining high. Really, what's happening | | | | capital into small main street business.This can be |
| to Wall Street is an economic adjustment in full | | | | accomplished responsibly through generating a |
| motion.The value of the market in actuality is | | | | dramatic increase in SBIC involvement. Perhaps |
| likely half of the amount of investment dollars | | | | the Government could infuse five hundred billion |
| that have been placed into the market. Moreover, | | | | into the SBIC system; this will fund five hundred |
| as with any company that sells a defective | | | | thousand new businesses of which two hundred |
| product for more than its true worth, there | | | | fifty thousand will be a success. Of those two |
| comes a time when a loss of market occurs. In | | | | hundred fifty thousand businesses, the average |
| the case of securities, a desire has developed to | | | | staff will be twenty employees. This equals five |
| sell off current investments in the market and | | | | million new jobs created. Further, it is estimated |
| seek safer and better investments elsewhere. | | | | that there will be an equal number of jobs |
| Vast amounts of capital are being transferred | | | | created or sustained through residual products and |
| from the stock market to treasury notes, bonds, | | | | services purchases made by those newly |
| and gold as well as energy investments. However, | | | | operating businesses. The creation of ten million |
| the transfer of money to other areas such as | | | | new good paying jobs will certainly be a |
| those mentioned above will consume only part of | | | | springboard to stabilize America. Finally, with |
| the investment dollars. At the same time, there is | | | | government involvement, there can be caveats |
| still a hint of instability and possibly poor return in | | | | such as high standards of employee payroll for |
| treasury notes, bonds, gold and energy | | | | businesses obtaining funding through SBICs, the |
| investments. Therefore, it is the remaining dollars | | | | government can also give preference to particular |
| that we are interested in as if they are not | | | | industries to insure the businesses receiving the |
| re-invested in the REAL economy, the economy | | | | funds will be depression resistant etcetera. This |
| cannot revive.Decidedly, the remaining portion is | | | | plan is essential to restore the workforce, |
| the money investors need to utilize wisely. The | | | | thereby providing a foundation to restart and |
| question is, how does one prudently invest and | | | | rebuild the economy allowing America to be |
| what else exists if most publicly traded stocks | | | | financially comfortable as this market correction |
| are inflated? Well, as I have mentioned in some of | | | | takes place. |