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You're confusing government spending with government lending. Also, banks which are in no way, shape, or form in trouble have taken TARP funds because the cost
by biohacker42 18y ago
You're confusing government spending with government lending.
Also, banks which are in no way, shape, or form in trouble have taken TARP funds because the cost of borrowing is so attractive.
I forget the name of the bank, but it's CEO was on CNBC, as an example of a healthy bank.
Why does the TARP allow this? Because the program is a mess.
But it's not crowding out private investment, and it's not even crowding out private lending, because it does allow healthy banks to borrow form TARP just the same.
- anamax 18y ago> Also, banks which are in no way, shape, or form in trouble have taken TARP funds because the cost of borrowing is so attractive. They were also told to take the money by the regulators. Apparently banks not being in trouble looks bad. Then Congress said "you took our money, so you have to do biz our way". Northern Trust is now trying to get out of TARP.