Department of the Treasury

Financial Analyst

how about a program called "federal investment lending assistance," or something close to that, where the federal government can take advantage of its historically cheap borroing costs (3% 10 year yield, for example) and lend DIRECTLY to businesses who want to invest in growth projects. the US Treasury can borrow more cheaply than private companies, and there are many projects that we know are going unfunded because businesses have difficulty accessing credit as we are in a financial deleveraging process. the US Treasury, however, can step in for a limited time (until the financial sector goes through sufficient balance sheet repair) and borrow very cheaply, lend to businesses, many of whom want to invest in socially beneficial programs, and foster a better dialoge between the public and private sectors. and this creates jobs! it all hinges on the fact that the Treasury could lend at exceptionally low rates. Borrow for 10 years at 3%, lend at 4% - Treasury makes 1% spread income which goes to cost savings/deficit reduction, and we stimulate private investment by lending to businesses at very low rates of interest. leads to more jobs, innovation, cooperation between public and private sectors, and long term investment growth at reasonable rates of interest.

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Idea No. 7182