Basically what Bernanke and gang have done is drop a bunch of money from helicopters into the big banks in various ways, the idea being that if they have lots of money sloshing around they will perform their role of efficiently allocating capital by lending at appropriate rates for appropriate projects. Of course our banking system has demonstrated in recent years that the idea that it allocates capital efficiently is a complete joke. What Bernanke should do, really, is do an actual Friedman Helicopter Drop and start raining cash down on the rest of us.
