Why is the federal government in the loan business anyway? I thought that was what banks were for.
RE: Why is the federal government in the loan business anyway? I thought that was what banks were for.
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The Department of Energy was formed after the oil crisis on August 8, 1977 by President Jimmy Carter’s signing of legislation, The Department of Energy Organization Act of 1977.
Today, it is a Cabinet-level department of the United States government concerned with the United States’ policies regarding energy and safety in handling nuclear material.
Its responsibilities include the nation’s nuclear weapons program, nuclear reactor production for the United States Navy, energy conservation, energy-related research, radioactive waste disposal, and domestic energy production.
DOE also sponsors more basic and applied scientific research than any other US federal agency; most of this is funded through its system of United States Department of Energy National Laboratories.
I would guess that under Obama’s government-knows-best policy, this so called sponsorship justifies their loan to energy companies (Solar Energy being the one they most favor at the moment).
As for banks — well, they only give loans for companies they know has a good chance of paying them back the loan they provide with interest. The government isn’t into the profit and loss business (after all, they can only TAKE from people)