As pundits and some Democrats advocate the nationalization of banks we have a real world example of how proficient the government is when it loans money.The Small Business Administration is a government program geared towards helping the growth of small business. Often, the agency loans money to the businesses that it believes are worthy of laons and are likely to pay them back.Result? On Jun 22, 2007, Business Week published the following: In fiscal year 2008, the SBA will guarantee $28 billion in loans, mainly through its flagship 7(a) loan program. Plenty of evidence indicates, however, that the time has come for Congress to abolish the SBA loan programs. Here are just three reasons.First, academic literature shows that private capital markets already efficiently allocate loans to small businesses. Banks give credit at the right price to companies that deserve it at that price, including small businesses.Empirical studies prove that point, too. In 2002, the Federal Reserve...(Read Full Post)