The bailout and the Federal Reserve's infusion of cheap money are having unintended effects.

01/20/2009

One impact is that a few securties firms are making large profits even as the smaller banks are failing, banks like Citigroup and Bank of America are suffering losses, and the banks that were "too big to fail" are actually becoming larger. The Fed's infusion of money is not helping small and medium sized businesses with credit, as the smaller banks that lend to these businesses -as Ms. Lee points out- are not getting credit and are laying off people. This is setting off a vicious cycle of shrinking employment and shriking consumer demand.

Grouped Articles

How the Fed Can Avoid the Next Bubble

Wall Street Journal 10/06/2009

Ian Bremmer And Nouriel Roubini, Ian, Bremmer, And, Nouriel, Roubini

Recession Spells End for Many Family Businesses

Wall Street Journal 10/06/2009

Dana Mattioli, Dana, Mattioli

Taking the National Debt Seriously

Wall Street Journal 10/12/2009

Lawrence Kadish, Lawrence, Kadish

Steven Pearlstein - Don't Reinflate the Old Bubbles

Washington Post 10/14/2009

Steven Pearlstein, Steven, Pearlstein

Financial-Services Regulation Fuels Tiff

Wall Street Journal 10/14/2009

That Promised Financial Reform

New York Times 10/14/2009

Editorial