Looking at recent bank results, recent action on markets and recent lending stats it would appear as if all of the banks have used the funds provided by the government to trade rather than to lend.
Although there has been a lot of talk, i have still not seen any signs of the US administration trying to move the focus of their economy away from asset driven consumption and financial wizardry to something more productive. Obviously they have just been trying to stem the tide to date, lets hope now they seem to be making some headway they start to deliver on some of their promises. We dont want to have another cycle like the last couple (debt driven asset bubbles), because next time it unwound we would almost certainly be doomed.
The process of the fed pulling back their trillions of balance sheet expansion and money printing along with an eventual tightening of monetary policy will be very interesting. It's like a rubber band being stretched further and further with every cycle (i.e. more extreme measures each cycle downturn to prevent deflation) lets hope we dont see a pop.
I think there's a few more twists and turns in this story yet
