US 'Economic Stimulus' Budget Review

[Lemur]

Apparently we already overpaid the banks to the tune of $80 billion under Paulson and Bush. I seriously doubt we'll be able to get that money back. And they're still not making loans.

[drone]

Apparently we already overpaid the banks to the tune of $80 billion under Paulson and Bush. I seriously doubt we'll be able to get that money back. And they're still not making loans.

You can't spell "Pilfer the Treasury" without T, A, R, and P.

[Don Corleone]

Apparently we already overpaid the banks to the tune of $80 billion under Paulson and Bush. I seriously doubt we'll be able to get that money back. And they're still not making loans.

Isn't the reason the banks haven't been lending the TARP money because they were so underwater on their loans, even with the cash infusion, they're not meeting their reserve requirements?

[Xiahou]

Isn't the reason the banks haven't been lending the TARP money because they were so underwater on their loans, even with the cash infusion, they're not meeting their reserve requirements?

I'm also of the opinion that many of us just plain don't want loans. We're being told the economy is in a tailspin- why would anyone in their right mind be expanding their business, buying a house or doing anything that would put them in more debt? Most of us are trying to hold onto what we have and preparing for the worst.

Ironically, doing that only serves to make the economy perform even worse.

[HoreTore]

I'm also of the opinion that many of us just plain don't want loans. We're being told the economy is in a tailspin- why would anyone in their right mind be expanding their business, buying a house or doing anything that would put them in more debt? Most of us are trying to hold onto what we have and preparing for the worst.

Uhm.... Most businesses operate on loans. Without being able to get new loans(to keep the old ones in check), they're suddenly unable to pay wages, order new materials, etc etc. In order words, they would face a full stop.

[drone]

Isn't the reason the banks haven't been lending the TARP money because they were so underwater on their loans, even with the cash infusion, they're not meeting their reserve requirements?

That, and the fact that nobody put any restrictions on how the money had to be used, so they used it to buy up other banks and give out bonuses. With rock-bottom approval ratings and a long history of squandering any money allocated to the executive branch, Bush somehow was still able to browbeat a supposedly hostile Congress into giving up $350 billion with no oversight. I'm starting to think Bush was a political genius.

Spoiler Alert, click show to read: 

Or Congress is filled with idiots.