The intent of the PPIF program is for the govm't/taxpayer to reduce the legacy(toxic) assets held by banks to open up credit availability. Those assets are effectively tied up potential credit funds and losses.
The analyst at the site was wrong about what the economic loss was. In the end, the bank lost $14m, instead of $30m, but would have gained from the $50m available to loan out again. There was also no money laundering as they put it. Another entity, the buyer, made a $4.5m profit on $2.25m invested. All that additional economic activity will be had amongst those that were able to borrow from the bank and they all be paying taxes back to the treasury.
I don't see that the PPIF program as inflationary by itself, because there's a significant recession due to tough credit. What does need to be done is to prevent speculation and other activities that generate housing bubbles. I don't see them focusing enough attn on those housing bubble factors. That lack of concern and attention is what caused the problem in the first place.
Thanks very much, that helps. I appreciate all your effort.
By housing bubble, I’m assuming you mean housing price bubble. Which if I’m following was caused (primarily?) by legislative and lending policies.