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 ...
Does anyone honestly know what this means? I believe we are in completely uncharted territory here (at least I am).
Now, taxpayer money is being used to to pay off bad credit-
card,auto and student loan debt.We are proceeding to the end
at warp speed!
THANK YOU GEORGE W. BUSH!!!
Ummm how exactly did the ‘bailout bill’ get to the President’s desk? Please explain. O yeah, he wrote it, and signed it.......no one else was involved. Well that position is definitely suited for the incoming quasi president. By passing all appropriate steps........yeah that’s the ticket. Didn’t know that Bush was doing that.
Thanks to our elected representatives and President, the Secretary of the Treasury and the Fed Chairman are now the two most powerful and unaccountable people in the country.
Sounds like this may be a good thing imho.Could you elaborate on that please?
Good for them!!! It call spreading the wealth. Where everyone runs to get in line for a bail out. I take a piece of the pie. And use it to prepare for the end.
“I guess Paulson finally realized this.”
Or maybe Bush is realizing he has been had and is reviewing the whole matter. Looking for news on this to understand it better.
Not that the election is over, it’s “Oops... false alarm, I hope I didn’t upset anyone”.
Bush pushed the hell out of this bailout package. He’s as responsible as anyone for its passage.
WTF!!! We have to ask 'pretty please' for the banks to be responsible?
Where is the RNC/GOP! I am don with this nonsense. The RNC/GOP needs to hang this fiasco on the necks of the Democrats right frikin' now, today!
“THANK YOU GEORGE W. BUSH!!!
Ummm how exactly did the ‘bailout bill’ get to the President’s desk? Please explain. O yeah, he wrote it, and signed it.......no one else was involved. Well that position is definitely suited for the incoming quasi president. By passing all appropriate steps........yeah that’s the ticket. Didn’t know that Bush was doing that.”
Just because he was not solely responsible does not mean that he does not have a lot of responsibility. He is the Commander in Chief. When a President pushes hard for a bill and then signs the bill it will be remembered as his bill. We remember LBJ for his Great Society. We don’t remember the enablers. Same with any major legislation that a President pushes through and signs. Bush was a major motivating force behind this and its a huge disapointment.
This sub-prime scam is 100% DEMOCRATS!
Not sure yet...looking for more news. I never liked the idea of the US gov. buying ‘troubled assets’ though and am open to this being a good thing. I don’t want to bail out the car industry either.
Is this the Onion?
Uh, no one else was involved that had as much power and influence as he did.
As Paulson spoke, the market dropped 100 points. How’s that for a lack of confidence, Henry? The best thing he and Bernanke can do is stay off TV.
My wife and I can always get by...
I have a question for vetern FR’s.
What would you do if:
you were almost broke. The major asset being your home that’s almost paid for (but is in somewhat in disrepair) and you are self supporting (no partner) and worked in the Real Estate Industry? What would be your next move to prepare for what’s coming down the pike.
There are some extremely intelligent people on here and I’m looking for some objective insight on hoow best to prepare.
While we argue over the responsibility, I’m getting a pretty strong feeling we are about to find ourselves in a total disaster. The bailouts in general were an insane move and this economy is about to crash, because people are quickly figuring out the US government is about to be pulled into bankruptcy.
The insane effort to stop a recession at all costs literally has us on the verge of a depression.
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