“You remember TARP? It was the feds’ $700 billion program to rescue the US economy from a correction. Neil Barofsky was in charge of it. So we decided to go down and ask him how it turned out:  ‘[..] What did they do with the money? They were supposed to increase lending so as to help bring about a recovery. None of them did that. Instead, they used it to repay each other’s loans. In other words, they used it to reduce the amount of credit available…not increase it. And they bought US agency bonds…just as you’d expect. And they paid out their bonuses. In other words, they looked out for themselves…just as you’d expect.'”

http://www.equitymaster.com/dailyreckoning/detail.asp?date=05/16/2013&story=1&title=Where-did-the-US-700-billion-go

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