Emily Maltby’s “The Credit Crunch that Won’t Go Away”, (Wall Street Journal, June 21, 2010) gets a comment by an ‘outsider’ who is not in the crunch.
George W. Bush’s $750B TARP went to the banks, who used or kept most of it in their banks because whoever wrote the regulations lost sight of the purpose. If the regulations had stated that, such as 70% had to be loaned out to small businesses, or the banks interests paid would double or triple, it might have had the desired results. But those funds still served a purpose. They kept money in circulation and the economy running. FDR did the opposite. He taxed and pulled funds out, there wasn’t enough money in circulation to run the economy, and the 1930’s Depression became extensive and great.
Obama’s $900B Stimulus, to belittle the Republican’s effort, paid off the Unions for giving American’s their White House cabal of Communists and Socialists.