“…before we were at a tipping point…” yeah - and now, we have tipped over thank you very much for the whack-a-mole strategy
Nov. 12 (Bloomberg) – U.S. Treasury Secretary Henry Paulson plans to use the second half of the $700 billion financial rescue program to help relieve pressures on consumer credit, scrapping an effort to buy devalued mortgage assets. Illiquidity in this sector is raising the cost and reducing the availability of car loans, student loans and credit cards,'' Paulson said in the text of a speech today in Washington. This is creating a heavy burden on the American people and reducing the number of jobs in our economy.’’ Treasury and Federal Reserve officials are exploring a new facility'' to aid the market for securities backed by assets, Paulson said. Officials are considering using a portion of the bailout money to encourage private investors to come back to this troubled market,’’ he said. The Treasury chief said the department is also considering having companies that accept new taxpayer funding get matching private capital. Buying illiquid'' mortgage-related assets is no longer being considered, he said. Our assessment at this time is that this is not the most effective way to use TARP funds, but we will continue to examine whether targeted forms of asset purchase can play a useful role,’’ he said, referring to the Troubled Asset Relief Program. Paulson has committed all except $60 billion of the initial $350 billion allocated last month to address the collapse of financial institutions and markets, and Congress could reject approval for the remainder. Lawmakers including House Speaker Nancy Pelosi are pushing for aid to automakers including General Motors Corp., pressure that Paulson is resisting.
I have some snake oil I’d like to sell you.
That dirty bastard. That’s not what Congress gave him the authority to do. Maybe he should use the second half of the bailout money to throw a farewell party for GWB on the Mall.
hey, at least that will stimulate some retailers…
Using the bailout money to get cable TV to offer free porn would stimulate some retailers too, but it’s just not good public policy.
so what he’s saying is that the TARP was intended for financial sector only and will not be extended to auto makers.
That’s total bs. I originally thought that the entire 700Bn sum would be allocated to buying mortgage assets and then it was half and now it is nothing? At least I hope that the wooden arrow diameter provision in the bailout bill is having a positive effect for whoever it concerns.
“Although the financial system has stabilized, both banks and non-banks may well need more capital, given their troubled asset holdings, projections for continued high rates of foreclosures and stagnant U.S. and world economic conditions,” Paulson said. How has the financial system stabilized?
Free Porn, that’s what the internet is for. According to Avenue Q.
I think he’s talking about the TED spread… thats the only thing I peek at that has come back to historical levels. The TED is only down because banks are hitting the window and reinvesting in the Fed and getting money for it, thereby creating reserves in banks which is fully held by the Treasury and then they can trust eachother because they know that every other bank who has hit the window is ‘owned’ by the fed… I don’t understand this or how this will boost the economy… it will stem most of the bankruptcies but not much else.
Some hard cash from the helicopters, that would stimulate the economy. However now its all funny screen money. What next - Auto and student loans , malls, theme parks, executive bonuses to boost ‘consumer’ spending ?? )