Paulson Doesnt Know What He is Doing.

Out of the 700 billion dollars about half of it has been designated. Which is sad because they havent bought one troubled asset. What has been done is most of the money has been giving to banks which havent done much lending. Banks have used the money to buy smaller banks. While the bad debt will be written off, which what has gotten us in this mess so far. Write offs of losses.

http://money.cnn.com/2008/11/12/news/economy/paulson/index.htm

Treasury Secretary Henry Paulson said Wednesday the government would broaden the reach of the $700 billion bailout plan to support non-bank financial institutions that provide consumer credit, such as credit cards and auto loans.
In this second stage of the bailout, officials also hope to attract private capital, possibly through matching investments, to give the government's injections more heft.
Paulson also said the government is no longer planning to buy troubled mortgage assets, the original goal of the plan. And officials are continuing to examine ways to help homeowners and slow the tide of foreclosures.
"Although the financial system has stabilized, both banks and non-banks may well need more capital given their troubled asset holdings, projections for continued high rates of foreclosures and stagnant U.S. and world economic conditions," Paulson said.
"Second, the important markets for securitizing credit outside of the banking system also need support," he said. "Approximately 40 percent of U.S. consumer credit is provided through securitization of credit card receivables, auto loans and student loans and similar products. This market, which is vital for lending and growth, has for all practical purposes ground to a halt."

 

I agree, but I think most people figured that out when he threw the number out there without any kind of plan and couldn't tell congress what they were going to use it for.

 

You actually thought they did know what they were doing?

 

Obama will continue this nonsense, which is annoying. Of course, I voted Obama, in part because I knew McCain would continue this nonsense as well.

 

True. The $700B was an arbitrary figure and I've never heard where it came from. The crash of the sub prime market caused problems that had to be dealt with immediately, but what was the need to approve a long range plan on such short notice?

The Chosen One will come in and work his magic I guess, but he'd better give Nancy Pelosi a call. She's chomping at the bit to rescue the automakers and a cash infusion will be wasted unless they get rid of the UAW.

 

oh I don't like either sides ideas. I understand that things would be worse now if nothing was done (because we wouldn't have had the really good days we did have in the market since) but I am a big proponent of let the market correct itself. The less the govt interferes, the faster this thing rights itself. Sure we are gonna takes some hits, but it won't be as prolonged. That's just my opinion though and as the saying goes, opinions are like *********s, everyone's got one and they all stink. :hihi:

 

Do you agree that the Auto Makers have to do something about their labor costs to avoid failure? What about our import policy? Toyota is manufacturing cars in Tennessee but I doubt that Ford is making F-150s in Osaka.

 

Anyone see Ted Turner on Lou Dobbs last night? He blasted the US auto industry and was against any help. He said bailing them out was "pouring money down a rat hole" and blamed Detroit for not reacting sooner to future needs of producing economical cars and researching alternative energy.

 

I bet you know what to do. Let's give all the failing companies some more money ehh??

Maybe you should join the chosen one?