All of those loan programs that the federal government administers have flaws.
Sentiment: NEGATIVE
Starting in late 2007, faced with acute financial market distress, the Federal Reserve created programs to keep credit flowing to households and businesses. The loans extended under those programs helped stabilize the financial system.
The Federal Reserve, the Treasury, all the regulator agencies - if there's a problem of the financial mechanism in society, the only one to fix it is government. They've got a legitimate role.
If Federal Reserve loans are subsidies, it doesn't show up in the federal budget.
Freddie Mac and Fannie Mae, although they're not officially debt of the federal government, they are off-balance-sheet debt.
We simply can't keep providing money from the federal government in the form of subsidized or actual loans and Pell Grants when we don't have the money.
All institutions are prone to corruption and to the vices of their members.
It's true that monetary policy was too lax for too long, and the government encouraged lending to people who were unlikely to repay their loans.
The banks are not lending, at least from what I see. They were so wild and reckless back in the good times that they got burned terribly.
Every time the U.S. government makes a low-cost loan to someone, it's investing in them.
All the Federal Reserve can do is make loans against collateral.