TARP didn't work, Paulson suggests more spending. Shocking!

http://www.cnbc.com/id/27998806

Bailouts failed once again, even Paulson isn't shy about admitting it:

"Given that we have essentially guaranteed Fannie Mae and Freddie Mac securities, the rates on those securities -- and corresponding mortgage rates -- have not come down as much as we may have hoped," Paulson said.

And this:

He said banks, whether or not they had received some of the $150 billion of capital that Treasury has pumped into the financial system, had a duty to boost lending: "We expect banks to increase their lending as a result of these efforts and it is important that they do so." He said that Treasury was working on additional programs to strengthen lending but offered no details.

So, essentially Paulson "expects" banks to start lending any time now. Why haven't they done so thus far Hank? Why are the recipients of the TARP money buying smaller regional banks? Why is Citi buying a Spanish highway company?

Are banks supposed to start lending out of the kindness of their hearts? Why would they lend at a time when risk is through the roof and our economy is imploding around us? Why would they not hoard the cash, recapitalize their own balance sheets, and centralize their power by buying smaller banks? Of course that's what their doing, and Hank Paulson knows this. Of course, he'll continue with his rhetoric so his check writing power is sustained. Lets not forget that Paulson is a former Goldman Sachs CEO.

People fail to realize that Paulson is essentially more powerful than the President, and he was given those powers with no concessions from Congress what-so-ever.