BizSugar.com › News › Alternative bailout proposal: Lend directly to small businesses instead!

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.