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Current Events & Hot Topics Current Events & Hot Topics

Fed Reserve to lend us $200 billion !

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this sounded like some good news...

 

Fed launches new $200B consumer credit program

WASHINGTON – The Federal Reserve on Tuesday rolled out a much-awaited program aimed at boosting the availability of credit to consumers and small businesses.

The Fed will lend up to $200 billion to spur consumer lending β€” for autos, education, credit cards and other things. The bold program, dubbed the Term Asset-Backed Securities Loan Facility, was first announced late last year and originally scheduled to start in February.

Participants β€” companies and investors that pledge eligible collateral to back the loan β€” must request the new government loans by March 17. The Fed will provide the three-year loans on March 25.

...

Under the program, the Fed will buy securities backed by different types of debt including credit card, auto, student and small business loans. The credit crunch β€” the worst since the 1930s β€” has made it much more difficult for people to obtain such financing , and those that do can be socked with high rates.

 http://news.yahoo.com/s/ap/20090303/ap_on_bi_ge/fed_consumer_credit_8

by on Mar. 3, 2009 at 10:46 AM
Replies (11-15):
moneysaver6
by Gold Member on Mar. 3, 2009 at 1:28 PM

Oh.  I know.  And I agree 100%.

I was being facetious. 

Amy

Quoting Eilish:

Are you kidding me? The FED knows exactly what its doing because they make money off of their "loaned" paper IOUs. They are forcing the collapse of our economy in order institute a global currency and have control of a much larger market.

Quoting moneysaver6:

Perhaps someone should tell the Fed that just because PAPER comes from trees doesn't mean that money is growing on those same trees. I think perhaps they're confused.

Amy




jrdnjstn00
by Bronze Member on Mar. 3, 2009 at 5:03 PM

This sits right up there with the government giving AIG another bailout!


Junebug926
by Bronze Member on Mar. 3, 2009 at 8:18 PM

Sometimes we forget that MOST people in this country are still employed. The current unemployment rate is 7.6%. That means for every hundred people, 92.4 of them are employed and would buy stuff on credit -- if they could get it. We need to make credit available to them so that they may stimulate the economy with their purchases. Each one of these actions taken by the Obama administration does not fix or address all areas of the economy equally but cumulatively they will all have an effect. Criticizing this program because it does not help the unemployed directly is counter productive. If it increases the sales of pretty much anything it will create more jobs.

moneysaver6
by Gold Member on Mar. 3, 2009 at 10:20 PM

I couldn't disagree with you more.

The people of this country, job or no job, need to learn to live within their means.  The LAST thing they need is more credit that they can't pay.

Amy

Quoting Junebug926:

Sometimes we forget that MOST people in this country are still employed. The current unemployment rate is 7.6%. That means for every hundred people, 92.4 of them are employed and would buy stuff on credit -- if they could get it. We need to make credit available to them so that they may stimulate the economy with their purchases. Each one of these actions taken by the Obama administration does not fix or address all areas of the economy equally but cumulatively they will all have an effect. Criticizing this program because it does not help the unemployed directly is counter productive. If it increases the sales of pretty much anything it will create more jobs.


Eilish
by on Mar. 3, 2009 at 11:32 PM

Here's a small 'bit of economical wisdom ....


You cannot buy yourself out of a recession; you must produce yourself out of one. Issuing credit is the WRONG thing to do .... going further into debt, is the WRONG thing to do. All of the "stimulus" is only growing our government and will collapse our economy.


WRONG thing to do.

Quoting Junebug926:

Sometimes we forget that MOST people in this country are still employed. The current unemployment rate is 7.6%. That means for every hundred people, 92.4 of them are employed and would buy stuff on credit -- if they could get it. We need to make credit available to them so that they may stimulate the economy with their purchases. Each one of these actions taken by the Obama administration does not fix or address all areas of the economy equally but cumulatively they will all have an effect. Criticizing this program because it does not help the unemployed directly is counter productive. If it increases the sales of pretty much anything it will create more jobs.



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