Treasury, Fed to Unveil Major Consumer Lending Program

Discussion in 'Economy' started by WillowTree, Nov 25, 2008.

  1. WillowTree
    Offline

    WillowTree Diamond Member

    Joined:
    Sep 15, 2008
    Messages:
    68,156
    Thanks Received:
    10,167
    Trophy Points:
    2,030
    Ratings:
    +14,729
    Treasury Secretary Henry Paulson, seeking to ease strains in the consumer credit market, plans to announce Tuesday the formation of a program to increase the availability of auto loans, student loans and credit cards, according to people familiar with the matter.

    The lending facility, which will be operated by the Federal Reserve, is expected to provide loans to investors who want to buy securities backed by credit cards, auto loans and student loans, these people said. Treasury will contribute between $25 billion to $100 billion to the facility from its $700 billion Troubled Asset Relief Program.

    The program is aimed at making it easier for consumers to borrow money. Government officials, including Mr. Paulson, have grown concerned about "distress" in the consumer finance market, as the availability of household loans has ground to halt amid a broader credit crunch.


    FOXNews.com - Treasury, Fed to Unveil Major Consumer Lending Program - Local News | News Articles | National News | US News






    We seen to be stamped with stupid.. I think.. So we got in this mess casue the banks were forced to loan us peoples money even when some of us did not have jobs, income, or assets.. so now the feds are setting up a program to make it easier to borrow more money we can't pay back! :cuckoo::cuckoo::cuckoo:
     
  2. NOBama
    Offline

    NOBama Senior Member

    Joined:
    Sep 23, 2008
    Messages:
    1,242
    Thanks Received:
    173
    Trophy Points:
    48
    Ratings:
    +173
    Take the money and RUN :eek:
     
  3. NOBama
    Offline

    NOBama Senior Member

    Joined:
    Sep 23, 2008
    Messages:
    1,242
    Thanks Received:
    173
    Trophy Points:
    48
    Ratings:
    +173
    More seroiusly, if they want to jump start the market/economy like Paulson says, IE: "While the government had hoped to see banks lend that money out, that hasn't happened as quickly as they would have liked. Treasury is trying to find other ways to jump-start the market for lending."

    They should simply modify the TARP Bill by adding a condition that says: Banks, if you don't start lending the money we provided for you to lend, GIVE IT BACK.

    Thay need to put a stop to the banks controling how this unfolds.
     
  4. WillowTree
    Offline

    WillowTree Diamond Member

    Joined:
    Sep 15, 2008
    Messages:
    68,156
    Thanks Received:
    10,167
    Trophy Points:
    2,030
    Ratings:
    +14,729
    My question is though,, since we are in this mess because of lending and not paying back,, ie,, living way beyond our means both as citizens and as a government, how is borrowing from China and forcing the banks to loan to lenders who may or may not pay it back gonna fix this??? I am way confused!
     
  5. Navy1960
    Offline

    Navy1960 Senior Member

    Joined:
    Sep 4, 2008
    Messages:
    5,821
    Thanks Received:
    1,188
    Trophy Points:
    48
    Location:
    Arizona
    Ratings:
    +1,189
    I have a better idea, if the whole idea here is to help people that are shall we say over extended, then rather than give them more credit. Why don't we just say here is is a check made out to your creditors in the amount of X, and once you cash it your account is closed. Credit card. etc. From that point it will be up to you Mr./Ms. consumer/business to do for yourselves. The Paulson approach of taking a big mud bucket of money and seeing what sticks is starting to get a little old. I sure hope people realize we are paying one credit card off with another and someday they other one is going to be due in a very very big way. I for one do not want to leverage my daughters future this way.
     
  6. NOBama
    Offline

    NOBama Senior Member

    Joined:
    Sep 23, 2008
    Messages:
    1,242
    Thanks Received:
    173
    Trophy Points:
    48
    Ratings:
    +173
    I understand, but as long as the banks hold all the marbles, they control the game. Freakin' Paulson needs to leave this thing alone and let the new administration deal with it.

    IMO, we need to restructure mortgage loans going into default, not encourage lending for stupid stuff like cars that don't meet our needs. Of the three things he mentions, student loans is the only one that makes any sense.

    I guess Paulson would rather see millions of American famlies fail than to see the auto makers take the hit. Won't the end result be the same?
     
  7. DavidS
    Offline

    DavidS Anti-Tea Party Member

    Joined:
    Sep 7, 2008
    Messages:
    9,811
    Thanks Received:
    766
    Trophy Points:
    48
    Location:
    New York, NY
    Ratings:
    +767
    The U.S. Federal Reserve, in another massive life-support intervention for the U.S. financial system, Tuesday announced a $600 billion program to buy mortgage-related debt and securities and a $200 billion facility to buy consumer debt securities. The U.S. central bank said it would buy up to $100 billion in debt issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, the government-sponsored mortgage finance enterprises.


    The Fed also said it would buy up to $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae.


    So that's 1.4 trillion dollars being spent in just a matter of minutes. My god.
     
  8. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Quit fucking around.

    Stop importing crap from China and elsewhere.

    that is the ROOT SOURCE of every economic problem we have, folks.

    All they're doing is rearragning the decks chairs to make (some of ) us slightly more comfortable while the ship DOES DOWN.
     
  9. WillowTree
    Offline

    WillowTree Diamond Member

    Joined:
    Sep 15, 2008
    Messages:
    68,156
    Thanks Received:
    10,167
    Trophy Points:
    2,030
    Ratings:
    +14,729




    exactly what I was trying to say, you said it so much better.. heard on the tv yesterday from a so called economist,, it will take thrirty years to pay down the present debt..
     
  10. NOBama
    Offline

    NOBama Senior Member

    Joined:
    Sep 23, 2008
    Messages:
    1,242
    Thanks Received:
    173
    Trophy Points:
    48
    Ratings:
    +173
    That's exactly my point. Who is Paulson protecting by buying non-preforming mortgage-backed securities? Banks and/or Investors?

    These institutions/investors made bad deals. They need to sit down at a table with the people they made these deals with and renegotiate. Opting out of the deal should not be an option, lowering the price of the deal should not be an option, the only option that should be on the table are the repayment terms of the deal. Lets face it, Congress (Barney Frank & friends), didn't exactly twist their arms to enter these deals, they just made it attractive. Greed did the rest.

    The welfare of the many should not be at risk due to the greed of the few.

    We should let everyone of the bastards fail. New companies will arise to replace them. America is not broke, the federal government is.
     

Share This Page