The Financial Times reported today that the Federal Reserve made a $14 billion dollar profit on loans that were part of the government “bailout” bill.  The purpose of these loans was to offer greater financial security to wobbly banks, so they in turn would be more willing to lend to you and I.  With more cash in hand, we’d theoretically spend more and rev up the economy.  So far, this is moving slower than expected, but it’s a a pretty good idea.

Contrary to the scare tactics from some on the right, this money was never intended to give CEOs lavish bonuses, and was not thrown into a bottomless pit.  It was an educated investment designed to benefit small businesses and anyone looking to get a loan.  As we’re seeing now, the banks are returning to profitability and paying off their government debt.  This looks to be a very positive development.  It’s just too bad we can’t bailout more banks to pay for this whole health care thing.

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