Some media has reported that the Obama administration is working on a project "TARP for Small Businesses". IMO the US needs ASAP a new "New Deal". http://blogs.findlaw.com/free_enterprise/2009/07/tarp-funds-opening-to-small-businesses.html " TARP Funds Opening to Small Businesses? By Caleb Groos on July 13, 2009 12:47 PM | No TrackBacks The Obama administration is reportedly thinking about opening up some of the $700 billion in TARP funds to small businesses. With TARP money already having been given to automakers and insurance companies in addition to banks, many small businesses ask: why not us? Troubled Asset Relief Program (TARP) funds were originally intended to help mend financial institutions. Small business owners and workers watching the goverment use TARP funds to bail out automakers and insurers have since been wondering: where is the bailout for small businesses? The Washington Post reports that small businesses could soon join GM, Chrysler and AIG as TARP recipients. Though no firm plan has been put forth, Treasury Secretary Geitner reportedly supports the idea of opening up TARP funds to small businesses. [...] "
Why wouldn't a 'small business' just take the TARP money and throw it into the stock market. Just like the "big banks" did? Or hoard it to cover future losses? What sort of 'small business' would rationally grow capacity in this environment?? Funding small business isn't the problem. Worthy small businesses have no problems getting all the credit they could possibly ever need from banks right now. The problem is, so few 'small businesses' are actually worthy. We don't need even half the nail salons we have. Or sandwich counters on every corner. We don't need more Pizza Huts or Taco Bells. We don't need any more Quickie Lubes. Or worthless Internet startups that have no model towards monetization. And if you think the fraud was bad with respect to the original TARP funds, just imagine the sort of mess if you multiply that my hundreds of thousands of businesses. Bad, bad idea. If they want to re-start the economy in an inflationary sort of way, a much better thing to do would be to send out cheques to everyone like Bush did, and make business owners compete for it. Instead of financing a bunch of nail salons that would have never existed but for people HELOC'ing the sh*t out of their houses and spending like drunken sailors and sailorettes.