Was Tarp Really Necessary?

Maybe not:

Call it bailout remorse.

With economic signs beginning to point upward and banks returning federal rescue funds, analysts are now debating whether the government's $700 billion bailout program, known as the troubled assets relief program, or TARP, was ever necessary.

Some say a normal business cycle and Federal Reserve policy, not TARP, accounts for the strong profit forecast from Wells Fargo and Goldman Sachs, a drop in unemployment benefit filings and several retailers predicting solid April sales.

"I think there's little evidence that the TARP money that has been disbursed so far has had any measurable effect on the economy, especially when you talk about what the Fed has been doing," said Josh Bivens, an economist with the Economic Policy Institute.

The Federal Reserve has conducted aggressive actions to battle the financial crisis through lending programs for small businesses and loans to cover student aid and overnight exchanges between banks, securities and other holding companies.

If TARP works, look for calls for more spending. If it doesn't work, look for calls for more spending. Either way, the White House will want more spending.