Panic is what caused the Great Depression. Bank runs caused banks to collapse which, in turn, collapsed thoussands and thousands of small businesses. And Gov't did NOTHING to shore up the banks. This time the Fed & Treasury did (which is what stopped the panice IMO).
Yes, Schumer actually is the one who lit the match to the kindling. His comments started the downward slide which ended up collapsing Bear Stearns, Wamu, etc. The TARP halted the slide.
The current situation is definitely the fault of government intervention
This is true of the Gov't intervention feeding the demand-side (Porkulus, Obamacare, etc.). There's not much hope of getting a return for those expenses. TARP, though, is almost paid back already.
“TARP, though, is almost paid back already.”
With a tidy profit. AIG was loaned over $130B at 18% interest!?!? When the government enters into profit making deals, it is not good, my friend.