This is sourced from a comment on a post from "The Burning Platform" website. I believe that this guy nailed it:
"The government has issued trillions of dollars in new debt in the attempt to sustain the previous misallocation of capital – trying to prevent bad loans from failing; to keep elevated home prices from adjusting to normal levels relative to income; to maintain unsustainable consumption habits; and to subsidize purchases of autos, homes and other big-ticket items that have weak intrinsic demand because people already have too much debt. Huge chunks of national savings that should have been available for productive economic activity have been diverted in an effort to maintain an inefficient status quo. We now have corporations sitting on a mountain of what seems to be “cash.” But in fact, they are not holding cash. They are holding a pile of government debt that was issued during this crisis, which somebody has to hold until the debt is retired. Corporations just happen to be “it” in this game of hot potato. Bernanke and Geithner have done nothing but incur public losses in order to defend private interests. This is not skilled leadership – it is misappropriation. Moreover, we’ve failed to address the underlying problems – the need to ultimately restructure debt obligations so that they are in line with the cash flows available to pay them; But we have had such an EXCESSIVE misallocation of capital the last 2 decades that just lowering some homedebtors principal is NOT the solution. Why? Cuz we have no industrial growth and everything is being outsourced. We as a nation should put aggressive policies in place to deter excessive spending and promote savings......make interest expense a less tax favored line item. And stop the fraudulent propping up of the housng market and excessive tax subsidies to housing. Misallocation to Housing has squandered our country's assets. Spending and massive debt acumulation does not build prosperity."