The Financial Bailout Fiasco

Why hasn't the vast support given to the US financial system from cutting interest rates to promising to pay $700 billion for toxic assets managed to stem the problem so far?
Many economists believed that the heart of the government's initial plan to pay $700 billion for toxic assets was aimed at the wrong target. Purchasing mortgage securities from banks wouldn't do anything to kick-start lending and get credit flowing again, they said. Rather, banks would use the proceeds they got from the Treasury to pay off debtors, and those debtors would use the proceeds to buy safe assets. Source: WSJ by Justin Lahart

More at ........ WSJ - Rescue Plan...