Did I miss something?

My understanding of TARP was that it was supposed to bolster the banks to free up credit.

So why am I now seeing headlines like this?

Credit Tightens for Small Businesses
By PETER S. GOODMAN, NYT
Published: October 12, 2009
Many small and midsize American businesses are still struggling to secure bank loans, impeding their expansion plans and constraining overall economic growth, even as the country tentatively rises from its recessionary depths.

My vote? Next time we commit enormous piles of $$$ to financial institutions, we attach strong strings!

Meanwhile, we continue to see this crap:

U.S. Wants A.I.G. to Resist on Bonuses
By MARY WILLIAMS WALSH, NYT
Published: October 13, 2009
The federal pay czar is trying to force the American International Group to reduce $198 million in bonuses promised to employees of its trading unit, where problems posed a threat to the global financial system last year.

Let me get this straight: via TARP, We the People became significant (majority?) shareholders in major Wall Street institutions... but we DECLINED to make our control of these institutions commensurate to our ownership. Am I doing okay so far?

So - we gave the Wall Street geniuses tons of $$$ - 'cuz otherwise they'da sunk - BUT we let 'em do whatever the hell they want moving forward!

Brilliant.

I'm not an economist (caveat: what I know about economics can be written in big block letters on a postage stamp), BUT - even just an average Joe who keeps a household going can see that these deals are SCREWING ME - and the rest of WE THE PEOPLE!

Again: my understanding is that TARP and related progams were intended to grease the skids - to free up $$$ for loans to the drivers of the economy, namely, small businesses & consumers.

That intent seems not to be realized.

I'm betting that if some genius put together an even half-thought-out PR program, he could have the tea-baggers up in arms against the financial sector. Maybe that would help.