So now that the financial sector has stepped back from the edge of the abyss, do you think the government will start pulling away from its deep entrenchment in the economy?
Of course you don’t. You’re not dumb enough to think that the Obama administration–or any other administration for that matter–would actually reduce its own power and authority.
Instead, the Obama administration is finding new ways to spend the $700 billion emergency bank rescue funds. The Washington Post reports that the Obama administration is planning to start handing out money to small businesses. The bailout, and the government meddling that comes with it, is spreading.
From The Post:
A proposal being floated by senior Treasury Department officials calls for using the bailout funds to expand an existing government program that helps small companies borrow money from banks at low rates to keep their businesses going, the source said. These “working capital” loans would come with few restrictions and could be used for buying inventory, holding onto employees and paying off short-term debt.
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