No wonder the public has lost confidence...government cannot even decide how to implement or oversee the TARP.
(Clusterstock.com) In his speech this morning to the London School of Economics, Bernanke indicated that the Federal Reserve may resurrect the original concept of the Troubled Asset Relief Program--buying troubled assets.
The basic idea is the same as its always been: banks hold so many assets of unknown and unknowable values that their are perceived as extremely unstable. To put it more bluntly: outsiders fear banks are still mismarking assets way above their actual value, so they won't trust the balance sheets. "Well capitalized" is just read as "lying about our financial health."
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