Export Import bank was set up in the 1930's. It provides low cost loans to finance American exports. Boeing is the biggest user and Caterpillar is number two. On the face of it, assisting US companies exporting stuff seems OK. The companies employ people, more sales is good, and what's wrong with that?
The un answered question is where does the Ex-Im money come from? Is it just my tax money going to Boeing? Or does the bank make enough on the loans to show a profit? I have not seen anything in the media about just how well or how badly Ex-Im is doing. At a guess, Ex-Im borrows money from the US treasury at the T-bill rate (very low, 3%) and loans it at close to the commercial rate (6%). With a margin like that, they ought to make money, unless they make a bunch of loans that go bad. Bad, means the borrower goes bankrupt and never pays off.
We need a public audit of Ex-Im to make an intelligent choice. If Ex-Im makes enough to pay the staff and the rent, and doesn't get tax payer subsidies, and doesn't commit the taxpayer to paying off it's liabilities, and it makes export sales happen, it's OK. Sales are a good thing.
If Ex-Im looses money, gets subsidized by the taxpayer, and commits the US to bailing out the entire world, it's not OK. Kill it.
We need to know what's really happening, and we don't. You cannot make good decisions unless you know the facts. We don't know the facts. Thanks newsies.
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