Was $700 Billion Bailout Necessary?

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.

Click here to read more from FOXBusiness.com about Goldman's discussions on returning TARP money.

"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.

But TARP has its defenders, most notably President Obama. - FOX News Story

Most folks have questioned this from the beginning. Republicans said that it was not necessary but many of them voted for it anyway. It was $700 Billion. As Banks repay these loans, where is the money going?