According to the article, the Fed wants to make trillions of dollars in loans but they won't disclose who gets what or what terms / collateral is being offered. Why haven't we thrown these jokers in federal prison yet?
Especially since neither the Fed, nor the Treasury actually have $7.76T.
What people keep forgetting is that the problem isn't what we're seeing now. The problem is NOT that consumers aren't spending 'enough' money, or that banks aren't making 'enough' loans, or that people aren't buying 'enough' houses.
The problem was that (induced by a loose monetary policy) consumers were spending too much relative to their incomes, banks were making loans to wealth-destroying ventures, and developers were building condos that no one needed.
The symptoms we are observing now are part of the correction. The government is attempting to move us back into the situation that caused the problem in the first place.
Another problem is consumers, and investment in general has been made on frivolous things that don't increase are productivity.
I guess the easiest way to explain this is by looking at how people invest their time. We would be better of if the nation invested time in becoming a better worker, learned a skill, fixed things than if the the nation spent that time watching tv, drinking, or destroying things (war).We have spent our money on houses that are bigger than we need, cars that are bigger and less fuel efficient than we need rather than plants that we need, investment in companies building new products, even arguably infrastructure.
