As continues, the money is going to the wrong places

[Biggus Piggus]

All these fricking disaster aid ideas are going to the culprits not the sufferers.

Buying stakes in banks does no good, just drags out the cleanup.

Another case of putting rich people first.

The stock market is telling you what the financial world thinks about all this.

Every new turn the Treasury takes is a wrong one.

They already started setting up an entity that will buy bad loans, with the intention of freeing banks to operate normally.

What has to happen beyond that is somebody starting to make loans again.

Just standalone, buying bad loans won't make those banks lend more money.  It will just help the worst-off institutions get back to an adequate capital ratio.

Somehow, the liquidity has to get to the economy, the companies and individuals who need to borrow.  Nothing's working yet, and that is why the stock market has gone berserk.  This credit freeze is digging a giant hole in the economy.

[Masshog]

Credit is still completely frozen.  Buying direct stakes in banks has already been proven to be a piss poor move.  Just check out Japan. 

[Biggus Piggus]

No direct bank bailout ever worked before.

[john c]

No direct bank bailout ever worked before.

"Additional problems are the offspring of poor solutions" - Mark Twin.

[Masshog]

"Additional problems are the offspring of poor solutions" - Mark Twin.

Nice.