Posted on 01/18/2009 6:12:17 PM PST by 2ndDivisionVet
President-elect Barack Obama will push bankers to resume lending to businesses and consumers to help put the ailing economy back on track, but things will get worse before they get better, his top aides said Sunday.
"I think he is going to have a strong message for the bankers," said David Axelrod, a top Obama adviser. "We want to see credit flowing again. We don't want them to sit on any money that they get from taxpayers."
Obama, a Democrat who is to be sworn in at noon Tuesday as the 44th U.S. president, inherits a $1 trillion-plus deficit and the worst economy since the Great Depression.
Axelrod, on the ABC Television program "This Week," said it was clear that a $700 billion U.S. financial rescue fund approved by Congress in October "has to be administered in a much different way" than it was under outgoing President George W. Bush.
"We have to make sure the money doesn't go to excessive CEO pay and dividends when it should be going to lending," he said. Congress last week released the second $350 billion slice of the Troubled Asset Relief Program.
Obama has put forward an $825 billion stimulus package that could define his first few months in office; highlight contrasts with Bush, a Republican; and go far toward determining perceptions of his presidency. The plan is designed to create more than 3.5 million jobs in the next few years.
Larry Summers, incoming head of the Obama's National Economic Council, predicted Obama's stimulus plan would be approved by Congress within a month, with an almost immediate impact on curbing job loss.
(Excerpt) Read more at newsmax.com ...
That's a pretty healthy start to a command economy. But then again, so was the Community Reinvestment Act.
Simple-minded f*ers just can't resist the urge to make matters worse, can they.
Inherits a trillion plus deficit?? Do they not mean he creates a trillion plus deficit?? Revision of history begins before the history begins. We call this lying.
OK. I guess the idea here is if you throw enough money at banks, at some point they’ll start lending some of it?
Hey, I’ve got a deal for these guys. Throw a billion dollars at me and I’ll be perfectly happy to loan out 90% of it and keep only 10% as a fee.
The Obama Gambit:
“Our financial policies of easy credit to unqualified borrowers and granting undersecured mortgages on overpriced properties to non-qualified borrowers has brought on the greatest financial crisis we have ever known.
We will combat the financial disaster we have created by expanding our policies of easy credit to unqualified borrowers and granting even more undersecured mortgages on overpriced properties to non-qualified borrowers.”
Yeah, loose credit really worked out well these past two years.
Something about doing the same thing over and over again and getting the same result.
It’s basically making the banks an instrument of government. They get government money, and process the loans, keeping the profits if there are any, and if there are losses, the government covers those. Why not cut out the middleman and just set up government loan agencies? Then we don’t have to worry about making money on the loans, and can reduce the interest rate.
Hi Barry. Cut Taxes, and stop tinkering with things you know nothing about. Cut government services and spending, and instead give tax breaks for new job creation.
I think they are trying to free up some of the monies distributed so people can get loans. Not sure that is a bad thing.
Well, when they help with your Inaugural extravaganzaa, you should always try to return the favor.
I guess they haven't noticed the banks going out of business because of the bad loans they've made.
“”We want to see credit flowing again.”
Better idea...
Save and pay with cash.
I wonder if Zero ever thought of the idea of INCENTIVISING banks to lend on their on volition? I mean doing extreme things like business tax credits and investment tax credits?
I know that Marxists cannot relate to capitalism and the rewards of making smart financial decisions — actually motivating people to make money that they KEEP FOR THEMSELVES....such capitalistic nonsense, right??
No, he will just stand up and COMMAND IT TO HAPPEN. I hope the bank tell him to go **** himself. That would probably make him happy so he could justify taking the TARP money and spending it on socialistic giveaways to the poor and downtrodden prospective demoRAT voters !!!!!
An intervention is intended to be temporary. You don't dismantle market mechanisms in order the fix them.
People, listen to me. If you have your eye on a rural property and some degree of self-reliance, this is the time. Loosening the credit valve will allow you to pick up rural properties that are now approaching bargain prices. Being in debt during inflationary times (don’t get an ARM) is advantageous because your earnings (provided you have income) allows you to pay down debt faster due to lowered dollar value.
On my first day of college, my mother told me as we saw all of the booths and tables set up by credit card companies, “Do not go anywhere near any of those tables.”
For some reason, I listened to her for perhaps the first time in my life.
Don’t buy beyond your means, make sure you can pay for what you are purchasing without destroying yourself, and easy credit is the surest temptation to delay inevitable disaster. And we are watching it on a grand scale, to be continued.
If you don't want them to "sit on any money from taxpayers", quit giving them taxpayer's money. The ONLY people that should recieve benefit from taxpayer money are taxpayers.
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