when an economy recovers it needs finance for businesses. if there is problems with credit can there be recovery. the subprime market was supposed to be for small businesses to borrow now that it has been damaged can these businesses operate and recover. could equity finance be the answer if so where is it going to come from.
Some advisors are advocating using the $700 billion Fed money to finance lending institution's equity loans and business loans rather than use it to buy bad mortgages. Makes sense to me.