Is the federal government hitting the target with billions to ease the financial crisis?

Treasury Secretary Henry M. Paulson announced this week that the $700-billion Troubled Asset Relief Program, which was created to rescue banks from their "illiquid" investments in the housing market, won't be buying those toxic loans and securities after all. Instead, it will continue pumping cash directly into shaky banks and other lenders. We don't object to the change in TARP's direction, but we're not convinced that the government's efforts are focused on the problem they were meant to solve.

November 15, 2008