Sunday, September 28, 2008

Morningstar on TARP

1 comment:

  1. If the money is there to be loaned out and simply isn't being loanded out by banks who are afraid to loan (as Mr. Dorsey here says), then why doesn't the government just do the loaning instead? I don't necessarily mean loaning directly to the consumer, but for example loaning at a lower than market rate to banks with the provision that it be loaned out with a specified period.

    Buying bad loans doesn't help the problem at hand, it just gets those who had bad judgement (i.e. the investment banks) off the hook for their own bad actions. I have to say I am surprised that our Congressmen and Senators let themselves so easily be manipulated. They should have called the bluff.