Pent up demand

Why Banks Need to Lend Out Their TARP Funds

The idea of immediately lending out these TARP funds presupposes the existence of borrowers ready to put the money to work in some way that is a net economic positive. We are in the process of tearing down a massive edifice built on misallocated capital, but the government and the financial press are ready to get right back on that horse and misallocate some more dollars. Yee haw. Ride'em cowboy!