Bailouts, Lies, and Rock and Roll
Politics, Bailout News, The Economy, Real Estate November 12th, 2008
We just learned that Hank Paulson decided not use any of the 700 billion bailout money to purchase toxic mortgages but instead he wants to keep using the money to inject more money in financial institutions. A couple of months ago, Congress passed the bailout plan based on the assumption that the Treasury Department was going to set up a reverse auction to buy mortgages.
We basically gave Paulson a blank check and he is now doing whatever he wants with it.
This is how USA Today is reporting the news:
WASHINGTON (AP) — 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 also 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% 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.
November 12th, 2008 at 9:34 pm
Hank read, “If you give a mouse a cookie”
It’s a children’s book and it might help!
http://nomedals.blogspot.com
November 22nd, 2008 at 2:09 am
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Sharon
http://www.autoloans101.info