The author says banks are not lending. Not true. It is a question of demand. My brother, who earns a modest amount of money, was offered a bank loan with no interest for a year. He accepted.
The real problem is the underlying mortgage mess. This is what should have been and should be addressed with most of the TARP money. When people's balance sheets improve, they will start buying and demand will increase. Then the value of assets will rise and the banks will be okay.