Bank Loan Program Is Another Subsidy to Banks

The Obama administration has proposed a new program that would give $30 billion to banks at below market interest rates. The Post briefly discusses the merits of this program, noting that many businesses are not borrowing because they don't have demand for their product, however the article does not include the views of anyone who makes the obvious point: this is another subsidy to the banking industry.

While the beneficiaries of this subsidy will be relatively smaller banks (assets of less than $10 billion), many voters may be troubled by the prospect of giving yet more subsidies to the financial industry.

--Dean Baker

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