Finally, A Plan...But Too Late?
Finally, the Obama administration is taking measures to repair the issues that are at the heart of our economic problems. This comes under the category of better late than never. The heart of the economic malaise we find ourselves in has always been those so called “toxic” assets, and their attendant valuation by a flawed mark to market rule. It caused a paper loss for the banks and a credit freeze when the banks were forced to stop lending because of minimum capital requirements. Just so you know, cash flows into banks have never been higher, and absent the toxic asset, banks would be making more money now than any previous time in history. They are sitting on tons of cash, but can’t loan it because of fear of further bond markdowns. What is so irksome, and tragic for our country, is that the primary problem was known in September. The original TARP request for funds was to be used to fix the bond problems…but was used by the Bush administration for amything but after it got the money