When Did the Public Sector Get Bailed Out?

I was just reading an article about a speech Mitt Romney gave in Iowa a few weeks ago.  The speech is supposedly the epitome of how Romney intends to tie the economy around President Obama's neck.  That's all fine and dandy, trust me.  The state of the economy is fair game, no questions asked.  But here's a snippet of what Romney told the attendees:

"America counted on President Obama to rescue the economy, tame the deficit and help create jobs. Instead, he bailed out the public-sector, gave billions of dollars to the companies of his friends, and added almost as much debt as all the prior presidents combined."

Bailed out the public sector?  What does that even mean?  The public sector has shrunk.  In fact the only thing growing is the private sector.  Besides, Obama's stimulus contained over $300 billion in immediate tax cuts to private citizens.  The largest contracts handed out went to private industry.  The overall public sector of the economy has done nothing but shrink under President Obama.  Saying that he bailed out the public sector is almost as bad as people actually believing that he bailed-out the public sector.

There's a lot to hammer the president on about the economy.  Saying he bailed out the public sector is one of the grossest distortions of reality ever spoken, however.

Not to mention the largest contributors to deficits that are adding to the federal debt that Mitt Romney and Republicans are now so concerned about are leftover Bush policies.  But we're not allowed to speak of that because it's all Obama's to fix.

Complain about the state of the economy by all means.  There's plenty wrong with it without having to make up lies.