As the White House tries to get its story straight about whether or not it misread the severity of the recession, Federal Reserve Governor Elizabeth Duke threw out a word of caution to the banks still in TARP jail at risk of confusing a multi-trillion dollar sugar high with better economic conditions. After reiterating the party line of 'things aren't completely falling apart but that's about it', Duke provided some food for thought for the remaining bailout boys looking to rid themselves of government's death grip.
"If you have already received TARP capital, consider holding it in reserve for a little longer, at least until conditions are more favorable," Duke said. "Once you repay the TARP investment, it likely will not be available again."
It will be heading back out the door to pay the mortgages of the unemployed.
Fed's Duke Says U.S. Economy Is Stabilizing at a Low Level [Bloomberg]