Two Steps Back

Now the Treasury Department has backed away from using the $700 billion bailout fund passed by Congress to buy toxic mortgage assets as originally intended, and says it will focus instead on shoring up financial institutions with direct investments.  Wasn’t reducing exposure to devalued real estate mortgages the whole point?  What an absurd system, since as we now unfortunately know, the banks are just sitting on those billions and still not lending.

This is the Keystone Cops of financial oversight, IMHO.  And the bully pulpit crap just won’t work here.  Regulators to Banks: Get Off Your Butts and Lend [L.A. Times]