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The idea is to get lending and investment going again.
If we don't get lending going, the recession will be longer, deeper and more painful".
That may be the only way to get lending going again.
TARP was meant to bolster confidence in the capital adequacy of banks so that they'd get lending again.
In an effort to get lending flowing to businesses, King said a "bad" bank could house all the troublesome loans.
"Full nationalisation would allow the government to get lending flowing again without further delay," writes Seamus Milne in the Guardian.
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Only some of these get lent out again.
And the museum directors, hoping that major purchases get lent their way, come with their own wish lists.
The sellers may use the cash to buy other assets (like corporate bonds); eventually however the cash either gets spent or ends up in bank deposits which get lent to consumers of businesses.Again, however, how long will that process take?
But he cautioned that "my focus is on the financial sector — getting credit going, getting lending going".
Score: 0 Guardian verdict: Obama focused on getting lending flowing again after the crash, rather than punishing the banks.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com