Wednesday, January 07, 2009

TARP Does Not Increase Lending


Bloomberg reported on the impact of the $700 billion TARP plan to date. None. The article stated:


$8.5 Trillion

Although the government has committed more than $8.5 trillion to energizing the economy, and the Fed cut a key lending rate almost to zero, banks haven’t made it easier to borrow

The story left out Hank Paulson's big tax break for merged banks. How's that for performance?

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