What the Frock was the reason for TARP, TALF, etc. then?

Rahm Emanuel accidentally Tells the Truth and Shames the Devil:

“We have to get them off the sidelines and get them to play a more active role in our economic recovery,” Rahm Emanuel, the White House chief of staff, said on Sunday. “They play an essential role in helping the economy grow.”

Gosh, the Administration has noticed that the banks have been “on the sidelines” (read: reaping windfall profits from tax dollars and funneling those funds to themselves). Guess

Brad DeLong probably will be next. (At least, he seems savable.)

Subtle hint to the Chicago School (who are not savable): the reason we don’t believe Monetary Policy works is that it hasn’t worked.

(h/t Lance Mannion’s Twitter feed)