This extract from the introduction in this speech summarises the situation well, both in US and UK.  It is such a clear example of taking the wrong actions (injecting cash into banks) over and over, yet not succeeding in the objective of restoring confidence.  Bank stocks have now reached the point that they have no impact on the Dow Jones index.  This means confidence is not just down but eliminated. Time to address the root problems: asset values and resulting insolvency management change Too big has failed | [pdf] Federal Reserve of Kansas City – Thomas Hoenig Over the past … Continue reading “Too big has failed” | FRBKC