TARP

Hindsight is 20-20.  Well, maybe.  Here's the way I see it.

President George W. Bush signed off on a measure we call the Troubled Asset Relief Program (TARP) before he left office.  It was used in subsequent years to save large banks that were facing bankruptcy. There were a lot of people and companies facing bankruptcy in 2007 and 2008.  It was used for banks considered "too big to fail."

We shoulda never dun it.

Failure is a necessary thing in any country's economy.  When one company fails, another takes it's place.  Companies fail because they have management who couldn't cope with the circumstances.  People who invested in a failed business lose money.  Too bad, that's the risk you take. Investment money is then freed up to back a new or better company.  When a company fails, everyone learns from the experience.  Both business operators and investors become aware of the problems that caused the failure.  People learn from failure.

When the government props up a failed business, it prevents a better run business from taking it's place.  The lesson it teaches is an economic killer.  What do people learn from government intervention?  They learn that the government is now looking over their shoulder and watching everything they do.  Banks learn that they need to please the government instead of their stockholders.  Banks learn from the government not to take risks.

Risk leads to possible reward.  High risk leads to possible high reward.  We have none of that.  Banks are reluctant to lend money.  New businesses can't get started and existing businesses cannot expand.
Our economy is in a malaise.  It will take a complete change of direction to get us out of the shape we're in.  I don't see it happening.  The Progressives like it that way it is.  Big Government is in charge.
*o*