The credit cards will only come with one image on it...
Posted on 11/25/2008 5:10:19 AM PST by markedmannerf
Washington--The government is working on a new loan facility to help companies that issue credit cards, make student loans and finance car purchases.
The Treasury Department and the Federal Reserve will unveil the program Tuesday, according to people familar with the plan. They spoke on condition of anonymity because a formal announcement has yet to be made.
Treasury Secretary Henry Paulson has said he plans to use a "relatively modest share" of the $700 billion financial bailout money to pay for the new program.
It's the latest effort by the government to break through a dangerous credit clog that has badly hurt the economy.
(Excerpt) Read more at foxbusiness.com ...
Help them with what? Is this going to be a government controlled credit rating bureau?
Government interference in the mortgage lending market got us into the mess we are in, now our elected representatives propose that the problem can be solved by more government —— government make work projects, government bail outs, and higher taxes on the “rich” - the “rich” being anyone who makes more than $130,000 a year, I suspect.
Obama was on the tube yesterday saying that 95% of Americans would have a net tax cut. Well, the top 5% of earners already pay 60% of all federal personal income taxes, so he wants them to pay more? That will kill consumption and kill jobs.
With the overwhelming success of Freddie & Fannie, how can this miss?
Hmm, that’s odd. Seems like Circuity City and Best Buy are offering no interest until 2011 on storewide purchases over $499, and Raymour and Flanigan is offering no money down, no interest until 2012 for purchases over $2,999. How exactly do we need Minicredit?
It’s so other companies can unload bad debt onto the government, not so much to issue more. Think the good bank/bad bank model.
Yes - government causes the problem, and then more government is proposed to “fix” it.
And the people proposing such laws are shielded from experiencing the consequences themselves.
But it brings them votes!
Great, now instead of just issuing mortgages to people who can’t afford it and backed by the taxpayers they want to issue credit cards to the same people.
Barney Franks is probably drooling over the idea of taxpayer backed credit cards for losers.
In lying to me, Mr. government official, you have granted me moral authority over you.
Hey, the credit markets are tight, if the banks won’t make loans, then the gov’t will. This will probably solve minority redlining too.
Somebody please post Fonzy jumping the shark.....
And of course existing management will stay with the "good bank", because they've done such a good job.
Wow. How much more money is going to be thrown at all these problems?
You can’t stop a train wreck by throwing money at the tracks.
Steps such as these will only slow down and lengthen the inevitable crunch.
Fonzy might not have jumped so high if he knew he was going to get bailed out either way.
I’m with you man
Love your tagline.
This is insane....
American Express was told to buy any bank to get bailout
money for bad credit card debt. The idea that taxpayers
are paying for bad credit card, auto, and student loans
is revolting!
______________________________________________
I hope he does. I hope that he drives the economy to levels worse than 1978-79. I hope that we see double digit inflation, 12% unemployment, 15% mortgage interest rates. I want every young white idiot and white boomer idiot who voted for bambi to suffer. Otherwise they will give him a second term - and that is when he will destroy our country.
Bring the pain.....it won't kill us, it will save us.
It’s not only revolting. It’s going to destroy this great nation.
Speaking of revolting....We may NEED to do some of that ourselves.
Agreed!!!
This is not sarcasm. It's just a matter of time. The sooner you revolt, the sooner it will begin.
“Great, now instead of just issuing mortgages to people who can’t afford it and backed by the taxpayers they want to issue credit cards to the same people.”
Calm down folks......This is NOT issuing credit to individual consumers. Rest assured the consumer is still dead. This is simply more bailing out of financial institutions for their irresponsible lending. Since the people didn’t revolt when Congress passed the first one, and didn’t punish the perpetrators on election day, then we have given tacit approval to this action.....and the next one.......and the next one......and.....
Not only are YOU paying for all this, but in addition, every day the sun rises, you get up, and bust your butt ALL DAY LONG trying to earn more counterfiet paper money, so you can pay for MORE of it.
Thanks.
We aren’t close to that YET...and I am not afraid of revolting in an intelligent and VERY organized manner. ;-)
The credit cards will only come with one image on it...
“The idea that taxpayers are paying for bad credit card, auto, and student loans is revolting!”
The government is going to keep on spending, bailing out, and growing until they simply cannot do so anymore. Either the people will stop it (which the have declined to do recently) or the markets will, through a reluctance to lend to the US, do the same thing.
Government simply has not found the limit to which they can expand spending and bailout their financial/investment community friends. I am confident that since GWB has failed to find that limit, that Obama will surely do so.
Our new “Government Bank” ready to start making those sweetheart loans with taxpayer money. Otherwise known as a lobbyist magnet.
Another government boondoggle in the making and ripe for corruption.
Love your tag line. ;-p
We need the economy to be more productive, not add on more demand side credit.
The W administration finds more ways to creatively screw up in its last days.
The Federal Government is completely out of control, stupid.
BB: Hey, Hank, we’re over-leveraged and over-valued! What do we do?
HP: I have an idea, Ben, let’s get people and companies and governments to borrow more!
TG: Yes, that’ll work, because the three of us are infinitely smarter than the millions of people that make economic decisioins every day.
All the credit you want for a 666 on your forehead.
By the time he leaves office, Obama’s face will be on the $1-Billion Treasury Note bill. That way we can see his picture every time we buy a loaf of bread.
Gimme a break, all this is happening under a Republican President.
At the end of 0bama’s term, when we’re all whining about how Government owns everything, I wonder how many will remember it started under Bush.
To Hell with Bush and his entire family.
GM is advertising millions to lend for qualified buyers. Again, it’s the deadbeats who can’t get financed that the govt is insistent upon financing a car with our tax dollar.
In the beginning, it was the sub-prime lenders who assumed the high risks for potential high profits that the govt now seeks to keep in business.
Sub-prime lending failed because there were too many dishonest greedy hands in the cookie jar... with kickbacks and fraud galore! And now the taxpayer is supposed to prop them up? Bail them out? The American taxpayer is being scammed by the govt and the sub-prime frauds. What we are experiencing is one of the greatest frauds ever.
On the bills? Heck his image will be plastered all over the place, like Mao in China...
The press is asking him questions and he sounds alternately obfuscatory, clueless, and scared.
Not someone I want to trust my future to.
Not "crunch."
CRASH.
And the more of this insane throwing money into a black hole, the worse that crash is going to be.
But, of course, it's a new day.
Change is in the air.
We can disgard the last vestiges of "free marketism" and "Reaganism."
Of course.
"We owe our souls to the company store"
Or Saddam ... or the ronery one ... enough to send a chill down the spine of any sentient being.
There is plenty of money for qualified borrowers out there, but they aren’t borrowing because they are responsible and are unsure of the economic future and ability to pay back.
Increasing the confidence of this consumer by lowering taxes could be a good start.
“The idea that taxpayers
are paying for bad credit card, auto, and student loans
is revolting!”
Let’s have a ‘Revolution’! Because that’s exactly what’s happening!
When you hear the ‘officials’ cry that the banks aren’t lending, the truth is the banks can’t find credit worthy participants. Those that are ‘credit worthy’ are not borrowing, they are ‘deleveraging’ or paying off debt (while hoarding cash or avoiding unnecessary ‘consumption’).
Weimer II will be caused by the failed definition of deflation used by Keynesians to scare up demented monetary policy. The whole episode has been horrifying, but nothing has made me as enraged as the corporate-welfare artists (the first to taste, the last to feel) and their useful idiots stammering on about deflation.
The frightening thing is that few seem to notice the clear mathematical result that the definitions of inflation and deflation used by our “betters” are internally inconsistent. The most honest of the criminals use one definition pair when things are on the way up, another pair on the way down. The rest don’t even bother with such a facade - they are content to justify certain actions as “recession fighting” in nature...
Every advocate of policies to “fight deflation”, today, is advocating only the redistribution of wealth from the responsible to the irresponsible. Their threats that “we will be stuck with a bill one way or another” are empty.
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