The stimulus money would be better served if it was used to guarantee inter-bank lending. Banks are afraid to lend, especially to each other overnight. Plus, paying interest on reserves only encouraqes the banks to hoard their money. This crisis has been ineptly managed by Bush, Paulson, Geithner, and Bernanke. When there was a concerted effort in September to break the Fed with massive coordinated withdrawals at the window, why didn’t Bush broadcast loudly and clearly that we were being hit with a form of financial terrorism? Instead, he just enabled the Socialists to take power.
Yes, he let it seem as if the system failed. It didn’t fail, it was being manipulated.
Beside Rep. Kanjorski’s C-Span interview, do you know of any information on who was behind the money-market drawdown? That drawdown, added to the Lehman, Bear Stearns and AIG problems, was the impetus to collapse our financial system.