It seems clear to me that none of what has been done with TARP or various bail outs was done to “solve the problem”. Unless you except the premise that what was being done by the fed, treasury, Bush, and Obama, is less about fixing and more about protecting and controlling the largest banks and financial institutions you will drive your self crazy trying to understand the logic of what has been and is being done.

The first thing that should have happened to these to big to fail organizations was to break them up and make them into smaller more focused less bloated…instead we took a handful of very large financial institutions who were in trouble or on the verge of being in trouble and gov’t officials forced them to merge or be “bought out”. So we go from a having many “too big to fail” institutions that might possibly be able to fail to fewer even larger institutions that are less likely to be able to fail with out destroying our economy in the process. We are going from bad to worse. The next financial meltdown (assuming we make it through this one) will be even worse because of the current actions taken to “resolve” the current hard times. For many reasons we need more smaller financial institutions not fewer larger “stronger” institutions to truly make our financial system stronger and less likely to suffer financial meltdown.