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Speaking to more than 2,000 franchisors, franchisees and suppliers, former President Bill Clinton said today at the International Franchise Association (IFA) convention in San Diego that the public can expect a trio of changes to occur to get the U.S. economy working again.
- A housing program that will rewrite home mortgages to make them more affordable.
- Toxic assets will be taken off the books to get banks lending again. The government will hold these assets until recovery occurs, at which time they may be sold at a profit.
- More TARP funds will be provided to banks that promise to actually loan the money.
When these three events occur the economy will begin to normalize, he explained. He said he expects to see results in 15 months and would be surprised if it takes longer than 24 months.
Housing, he explained, is at the crux of the problem. In the first six years of the current decade, housing accounted for 40% of growth, followed by finance, which was largely related to housing. It was a mistake, he pointed out, to jam so much money into housing, but there were no other options at the time. There’s a lesson to be learned in that scenario.
The franchise community can play a role in the economic recovery, but the former president agreed with the IFA’s position (and disappointment) that the stimulus package provides too little help for small businesses. “More loans could be made available to small business,” said Clinton. He urged the franchise community to “Go back to Congress and the White House” and lobby for more support for small business.
He added that the future will be more reliant on small business and therefore the franchise community should be “optimistic.” He said he expects the country to “come out on the other side (of this recession) stronger than ever.”
The greatest challenge the country faces is to get the banks lending again, followed by building confidence in the public to get people spending again.
Clinton added that the good thing about being a former president is that he doesn’t have to watch what he says. On the other hand, he added, no one really cares what he says anymore. Not true by the enthusiasm displayed for his speech at the IFA’s 49th’s annual convention.
Photo by Timothy K. Hamilton
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