No surprise: Banks continue to slow lending

Most consumers know what The Wall Street Journal proved today: The total number of loans held by 15 large U.S. banks shrank by 2.8 percent in the second quarter. All you have to do is talk to friends and neighbors about lending and you'll find story after story about difficulties getting a loan or mortgage.

More than half of the new loans made by banks in April and May were for refinancing mortgages and renewing credit to business, not new loans. Some analysts told the Journal they don't expect to see loan portfolios grow until the second half of 2010.

So we ask again: What happened to the TARP funds that were supposed to be spent on stimulating the economy?