How to improve liquidity.

I don't know why the government wants to throw good money after bad to the banks. It seems that it eliminates risk and doesn't punish the idiots who ran the banks into the ground. I think a better solution is to give the money to healthy banks and let the bad banks fail.

The good banks could take the money and lend it.

The bad banks would fail. The FDIC would come in and clean up the mess.

Why does the government want to take bad assets off the bank's balance sheets? Seems like a bad investment for the government.

Privatize rewards, socialize risk? If risk is going to be socialized, so should rewards. Bank taxes should be pretty darn high. Bonuses? Tax those puppies. CEO's? Oh yeah - bring some of that money back into the coffers. Last I checked, a company's CEO is not worth a thousand times of another employee. If so, he could run his own business at home and make lots of money. The CEO's money is made off the backs of the employees.