L-E-N-D

That’s what the $700 billion TARP (Troubled Asset Relief Program) was supposed to encourage…but Hank Paulson, Bush’s Treasury Secretary, double-crossed us. The Wall Street banks used the taxpayer-funded bailout money to plug up the holes on their balance sheets and pay themselves billions of dollars in bonuses!

* TARP was to be used to buy up subprime mortgages that had gone bad, but instead the Federal Accounting Standards Board changed the accounting rules so that the Wall Street banks could keep the “toxic assets” on their books. Instead of taking the write-downs, these subprime mortgages are still clogging up the system and suppressing housing values…which hurts homeowners everywhere that the subprime meltdown took place.

http://finance.yahoo.com/news/Fed-boss-pushes-loans-for-apf-283701544.html?x=0&sec=topStories&pos=1&asset=&ccode=

EXCERPTS:

Getting loans flowing more normally to creditworthy small businesses will help the economic recovery, Federal Reserve Ben Bernanke said Thursday….

Lending to small businesses is declining even though the economy is improving….

The Fed has pledged to hold rates at record lows near zero to support the recovery. It meets next on June 22-23….

Bernanke did observe that the country in now in an “economic expansion, with jobs once more being created rather than destroyed.”

However, he said persistently high unemployment, now at 9.9 percent, is a “difficult issue” that imposes “heavy costs on workers and their families as well as society as a whole.”

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