Posted on 11/12/2008 8:12:40 AM PST by mombyprofession
WASHINGTON – Treasury Secretary Henry Paulson said Wednesday the $700 billion government rescue program will not be used to purchase troubled assets as originally planned.
Paulson said the administration will continue to use $250 billion of the program to purchase stock in banks as a way to bolster their balance sheets and encourage them to resume more normal lending.
He announced a new goal for the program to support financial markets, which supply consumer credit in such areas as credit card debt, auto loans and student loans.
Paulson said that 40 percent of U.S. consumer credit is provided through selling securities that are backed by pools of auto loans and other such debt. He said these markets need support.
"This market, which is vital for lending and growth, has for all practical purposes ground to a halt," Paulson said.
The administration decided that using billions of dollars to buy troubled assets of financial institutions at the current time was "not the most effective way" to use the $700 billion bailout package, he said.
(Excerpt) Read more at news.yahoo.com ...
I’m shocked! not
Blank check economy.
It’s called “the buddy system”.
Translation for some from another story-—
U.S. stocks extended losses on Wednesday after Treasury Secretary Henry Paulson said his department would consider capital needs of non-bank financial institutions, renewing concerns about the scope of problems in the U.S. economy.
Un-F’ing-believable
They need to keep some cash back (well it is not actually cash, but a number tied to the federal debt ceiling) in order to bail out GM and to keep China from dumping their US debt on the market.
The administration decided that using billions of dollars to buy troubled assets of financial institutions at the current time was "not the most effective way" to use the $700 billion bailout package, he said.Forget the president or president-elect. Presidents do not have this much power. Secretary Paulsen is the man who should be flown around in Air Force One.
THANK YOU GEORGE W. BUSH!!!
Paulson is an effin disaster.
Absurd. The fact that a Republican administration is a major enabling factor for this man and this deception is shameful.
I guess Paulson finally realized this.
This guy reminds me more of Pat Paulson (showing my age!)
This proves that the $700 billion was just a shot in the dark. Government has no idea where this crisis is going. Throwing money around is supposed to make us believe they are in control??? But how much more will it take before the obvious is realized...GOVERNMENT IS THE PROBLEM.
Suckers. Welcome to the NWO.
We are so screwed now...
My wife and I can always get by, my thoughts are on my 3 kids and what they are going to have to deal with when we hand this big bag of s**t off on them.
Sounds like this may be a good thing imho.
Translation for some from another story-These super geniuses can't talk about the scope of the problem without panicking investors. Yet they can't get the bailout money they need without talking about the scope of the problem. And, clearly, they have no idea what is happening and they don't really have a plan.
U.S. stocks extended losses on Wednesday after Treasury Secretary Henry Paulson said his department would consider capital needs of non-bank financial institutions, renewing concerns about the scope of problems in the U.S. economy.
Bush and Paulson, along with Pelosi and Reid, are damned liars.
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