Did TARP bank bailouts work?
Some people say TARP bank bailouts worked well. We would be in very bad shape without tarp. 60% of people think TARP was not necessary and some say this is the evidence that TARP worked! People feel safe and good about the economy.
But let's look at the big picture. We are spending borrowed money. If i borrow 1 million and spend it like crazy, you may think I have a good life. What happens when the bill comes due? Inflating public and private debt is a ponzi scheme that will end. It cannot be sustained. If we spend 10 trillion now, we will create more than enough jobs right away. Why wait? We can simply assign workers to count the borrowed money. They count 1$ to $9 and pocket the 10th. How is that for a recovery? Debt is the cause of the financial crisis. And we have more of it now. Nothing but nothing has been fixed. Only more money is pumped into the economy. It is going to crash even worse.
http://www.tradingstocks.net/html/inflation_deflation_credit_bub.html
The excessive debt deflates. When the money supply deflates, you cannot sustain the jobs. Printing money and inflating credit are not the fix. Easy money is the cause of the bubble and the crash that happens aftermath. Recession and paying off debt is the fix. But as the government delays recessions all the time, it sets us up for a depression. Consumer economy is a myth. There is no such thing as consumer economy. Next time you hear consumer is holding up the economy, it simply means we are borrowing and spending. It is going to end and the crash will go into books just like Tulip Mania, South Sea Bubble. This yet another Financial Mania.