Alternative bailout proposal: Lend directly to small businesses instead!

Alternative bailout proposal: Lend directly to small businesses instead! - http://blogs.wsj.com Avatar Posted by morecowbell under News
From http://blogs.wsj.com 4810 days ago
Made Hot by: on September 30, 2008 4:42 pm
One blogger, Rosalind Resnick on Entrepreneur.com, lays out an alternative bailout proposal. Instead of spending $700 billion on large conglomerates like AIG, the Fed should offer businesses and consumers loans at the 2% federal funds rate so homeowners could refinance at much lower rates and businesses could have immediate access to the cheap capital they need. “Even if a small percentage of borrowers defaulted, it's hard to imagine that it would cost the government anywhere close to the $700 billion it's proposing to spend on loans that have already gone sour,” she writes.





Comments


Written by JohnH
4809 days ago

I don't think it would ever work, but I certainly like the idea.



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