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Well TARP worked out pretty well, right? I think there's a logic to QE in scenarios like the credit crunch, since suddenly banks need cash and there's a bunch
by rtpg 10y ago
Well TARP worked out pretty well, right?
I think there's a logic to QE in scenarios like the credit crunch, since suddenly banks need cash and there's a bunch of illiquid assets on everyone's balance sheets. But I do agree that owners of treasury bonds aren't really going out and spending their proceeds at Wal-Mart for a while.
- darawk 10y agoTARP was a very specific program that had very specific goals. It was strictly intended to prevent the collapse of the banking sector, not to inflate the economy more generally. It may have done that as a side effect, but that was not its primary purpose.
- EdHominem 10y agoAll the same people who fucked stuff up are still in charge and still have all their money. How do you figure it worked, even one iota, except for them? We have plenty of jails and very few bankers in them, despite widespread fraud. Again, not sure how this is a success. We need banks, but we don't need the ones we have. Ruthlessly prune them, guaranteeing the people's deposits, and capitalize new ones with stricter rules. Of course, now it's too late. We've printed trillions of dollars, inflating our currency, and given it to the thieves without (meaningfully) changing the system.