Reporting has it that the taxpayer funded bailout efforts to shore up the banks and jump start the economy aren't having the desired effect.

In particular banks haven't increased lending.

The story is here: http://www.huffingtonpost.com/2009/02/17/largest-banks-that-receiv_n_167748.html 

This passage is excerpted from the story and captures what actually occurred.

The Treasury Department said the banks reduced their mortgage and business loans by a median of 1 percent each, while credit card lending rose by a median of 2 percent. The median is the point halfway between the banks that lent the most and those that lent the least.

What is of special note is regular lending dropped but credit card lending rose. Banks make a ton on credit card purchases and way less on consumer and business loans. From a business perspective it is obvious banks would more likely follow a policy that promotes credit card use and less so conventional lending.

Taxpayer infused funds then are doing what? Nobody knows the definitive answer to this but it is incongruent that some institutions paid large bonuses at the end of 2008 while also spending money to lobby congress seeking ways to head off restrictions on compensation.

The extent to which the nation in general and the financial sector seem not to be on the same page here takes your breath away. Instead of everyone pulling together to get out of this mess we are in a tug of war with the very people who made the mess and who are insistent upon continuing their wayward conduct.

It will be a burdensome thing to do but I think it is time to take over the failing banks. Simultaneously congress needs to enact comprehensive legislation that sets strong policy laws establishing how these institutions conduct themselves and also assure there are enough bank examiner types to keep track of what the financial sector is doing. And oh yeah. Figure out what federal managers and or employees allowed the Madoffs of the world to run amok and fire their sorry asses. Stupid, negligent or on the take makes not a bit of difference. They gotta go. And one more thing. Retroactively take away Alan Greenspans pension. He falls in the stupid category for thinking the financial sector would properly regulate itself. Harsh? Maybe. Imprudent management is one thing. Gross stupidity is quite another. This kind of result requires an accounting. Write Obama and your congress weenies and demand strict regulatory action. They won't do it otherwise.