The Fed Should Lend Directly To Borrowers

Since the Fed is pumping cash into the system via banks but the banks are still being stingy with their cash the Fed could go around the banks and become a direct lender.

The Fed can go right to the borrower and lend cash. This would likely be a very difficult step since there are so many financial institutions located where borrowers want to borrow. But maybe via an electronic venue the Fed can become a direct lender to anyone who wants to borrow.

I know the semantics here would be difficult. But in reality credit is the lifeline to our economy and it needs to be lent to borrowers at reasonable interest rates. The Fed has to think outside of the box and do whatever it takes to get money into borrowers hands.

Just a thought. For these rocky times all options should be considered. Even something from out of left field like this.