If this was not clear before, then today's report in the Financial Times that banks will ask for another 1 trillion Euros, twice the 489 bn Euros the European Central Bank already made available. All this is doing is "saving" a bloated banking industry that is using the money to buy bonds that the ECB should be discounting and buying itself. The banks then profit from the 0% interest on the loans they get from the ECB use to buy bonds paying 3 to 7%. The Fed has done the same thing by making 0% loans to banks who then buy Treasuries gain the interest and then the Fed buys back the bonds at a premium making huge profits for the 1% who own banking stocks.
The Obama govt. should go the route of FDR and use existing financing by the Fed, the GSAs and the Federal Home Loan banks to finance infrastructure projects directly going around the banks that refuse to loan and corporations that refuse to invest (see John Authers in the Financial Times yesterday, Apple along has almost 100bn in cash and is still offshoring most of its operations). It may be that this is not necessarily a present condition of operation of these entities but Obama could do it until the Republicans can sue and stop the projects. This is the strategy FDR used and it was successful.