Frankly I’m not even a proponent of the govt borrowing money to hand out to the population. I was agains’t TARP and agains’t the failed stimulus. All I’m saying is that it probably would have been better to give it out to the public than bail out the banks. It would have been far better to execute controlled closings of the banks that needed to fail and take the hit in 2008. By now we would be coming out of it. As it stands we face a horrendous collapse coming down the road.
The money loaned to the banks was repaid, at a profit to the Treasury.
Do you feel loaning that money to the public would have helped the economy as much as fixing the banking system?