Now Student and Car Loans Added to Bailout Plan

[red states rule]

Leave it to Dems to want to expand the bailout plan, and spend more of our money

Thanks to the folks who caused the mess, they say more government and government spending will solve the problem




Student, car debt quietly added to bailout plan
Patrice Hill (Contact)
Tuesday, September 23, 2008


In the dark of night over the weekend when most people were snoozing, the Treasury dramatically expanded its bailout plan to include buying student loans, car loans, credit card debt and any other "troubled" assets held by banks.

The changes, which were included in draft language that also opened the bailout program to foreign banks with extensive loan operations in the United States, potentially added tens of billions of dollars to the cost of the program.

Although it was a major addition to what was already the nation's largest-ever bailout, it did not become part of the debate between Democrats and the Treasury over details of the program. A Monday counterproposal by Senate Banking Committee Chairman Christopher J. Dodd included such consumer loans as well as mortgages, just as the Treasury's draft did Saturday night.

"The costs of the bailout will be significantly higher than originally considered or acknowledged," said Joshua Rosner, managing director of Graham Fisher & Co., who charged that the Treasury and Federal Reserve have not been "forthright" about the ultimate cost to the public. The plan gives Treasury the discretion to buy the non-mortgage loans and securities in consultation with the Fed.

Conservatives cited the move as a sign that the massive plan to take over bad mortgage debt already is opening the door to further government bailouts.

"Such a large takeover by the government will surely be accompanied by adverse, unintended consequences," said Pat Toomey, president of the Club for Growth, a conservative advocacy group. "Already, other companies and industries are lining up at government's door asking for their own bailout."

http://www.washingtontimes.com/news/2008/sep/23/student-car-debt-quietly-added/

[mundame]

Leave it to Dems to want to expand the bailout plan, and spend more of our money

Thanks to the folks who caused the mess, they say more government and government spending will solve the problem




If this is a Treasury plan, as the article you cite says it is, you can't reasonably blame it on the Dems, RSR!!

It is true, from my reading this past week, that other indebtedness securitized and owned by banks is ALSO defaulting at a high level, relatively, and that affects the value of these securities in the same way bad mortgages do.

This is an interesting development and it does look as though they are keeping it quiet because it's controversial --------- I don't know what is best here.

They are trying to get the U.S. taxpayer to bail out the whole American banking system from the securitized loans that are going bad, maybe on the "clean sweep" principle.

Do it right and do it once?

Because doing it piecemeal...........that has definitely not worked. I don't have an opinion on this one.

[red states rule]

If this is a Treasury plan, as the article you cite says it is, you can't reasonably blame it on the Dems, RSR!!

It is true, from my reading this past week, that other indebtedness securitized and owned by banks is ALSO defaulting at a high level, relatively, and that affects the value of these securities in the same way bad mortgages do.

This is an interesting development and it does look as though they are keeping it quiet because it's controversial --------- I don't know what is best here.

They are trying to get the U.S. taxpayer to bail out the whole American banking system from the securitized loans that are going bad, maybe on the "clean sweep" principle.

Do it right and do it once?

Because doing it piecemeal...........that has definitely not worked. I don't have an opinion on this one.

From the link Mundame:

A Monday counterproposal by Senate Banking Committee Chairman Christopher J. Dodd included such consumer loans as well as mortgages, just as the Treasury's draft did Saturday night.


This is just the beginning. Dems have said over and over, how they demand "oversight" of this bailout

Which means more money will be needed that will be passed out to as many people and special interest groups as possible

[mundame]

From the link Mundame:

A Monday counterproposal by Senate Banking Committee Chairman Christopher J. Dodd included such consumer loans as well as mortgages, just as the Treasury's draft did Saturday night.


Don't assume it's Dodd's idea: it could be, but it may very well be Paulson's, as I pointed out before. They may well want to clean up ALLLLLL the bad loan problem at once, right down to credit card debt. That has nothing at all to do with bailing out anyone who is kiting checks to their several credit companies --------- it's to save the banks who hold the collateralized debt securities that are defaulting at a higher rate than they used to.

It's not about the little guy.

Let's watch the financial papers to see who is promoting this idea --- that is quite interesting, especially that they are trying to hide it.





This is just the beginning. Dems have said over and over, how they demand "oversight" of this bailout

Which means more money will be needed that will be passed out to as many people and special interest groups as possible

Well, sure, but that's not about buying bad bank debt. That's about banks.

Obama wants a big cash stimulus to everyone tacked onto this bill: now THAT is income redistribution, of course. Everyone (including you and I, I'm sure) want these awful CEOs getting bad stock bailouts to make less money than the millions they run off with for running their companies into the ground.

Dems want foreclosure judges to get to rewrite the bank loans to easier terms for the mortgagee. Why that shouldn't cause everyone in the whole country with a balloon loan to immediately go into foreclosure, I don't know. I think it would, so I don't care for that one. After all, if house prices are going down and credit has frozen, how can anyone get a refi out of their balloon loans?? They can't. So they should all go into foreclosure and collapse the whole economic system at once.

I don't like that idea.

[red states rule]

If this is not Dodd's idea I will make amends - but I am willing to bet it was his (or another Dems idea)

Wait and see how much Dems pack on to this bill.

Dems do not give a damn about "the little guy". All they care about with this bill is covering their ass since they are to blame for the mess - and handing out as much pork to as many people as possible

Someone has to pay for this - and Obama and the Dems are gearing up to put the screws to all of us

The guy who ran Freddie into the ground is Obama economic advisor. Very telling there isn't it?

[mundame]

Wait and see how much Dems pack on to this bill.



Never mind the Dems ---

Community banks all over want in (because they got trashed by the bailout of Freddie and Fannie -- lost a lot in what they assumed were very safe securities). EUROPEAN banks want in, to get their bad American stocks bought by the U.S. Treasury also, and we are letting some of them in, British and some European banks. This plan is collecting hangers-on like a snowball rolling down a hill.

Newt Gingrich is opposing this whole bailout plan; he wants to take more time. So does McCain. Bernanke and Paulson say, Now, Now, Now.


All very exciting.

[red states rule]

Never mind the Dems ---

Community banks all over want in (because they got trashed by the bailout of Freddie and Fannie -- lost a lot in what they assumed were very safe securities). EUROPEAN banks want in, to get their bad American stocks bought by the U.S. Treasury also, and we are letting some of them in, British and some European banks. This plan is collecting hangers-on like a snowball rolling down a hill.

Newt Gingrich is opposing this whole bailout plan; he wants to take more time. So does McCain. Bernanke and Paulson say, Now, Now, Now.


All very exciting.


A huge majority oppose this bailout


Only 28% Support Federal Bailout Plan

Monday, September 22, 2008 Email to a FriendAdvertisement
Most Americans are closely following news reports on the Bush Administration’s federal bailout plan for the country’s troubled economy, but just 28% support what has been proposed so far.

Over one-third of voters (37%) oppose the $700-billion plan, and nearly as many (35%) are undecided, according to a new Rasmussen Reports national telephone survey taken Sunday night. Details of the plan were made public on Saturday.

Investors, who account for 62% of the nation’s voters, are evenly divided on their views of the plan: 36% favor it, and 36% oppose it. Twenty-eight percent (28%) are undecided.

Among non-investors, only 15% support the plan, while 41% oppose it. A plurality of non-investors (43%) are not sure yet what they think of it


http://www.rasmussenreports.com/public_content/business/general_business/only_28_support_federal_bailout_plan

[KitchenKitten99]

This is gonna do wonders for the interest rates offered. I am going to be getting a new car next fall, and I will also be taking out student loans to go back to school.

So because a bunch of deadbeats can't pay their bills, I suffer with jacked-up interest rates, thus making it harder for me.

Mortgages weren't as big of a concern for future lending needs because buying a house is far different than buying a car or getting a post-secondary education.

[red states rule]

This is gonna do wonders for the interest rates offered. I am going to be getting a new car next fall, and I will also be taking out student loans to go back to school.

So because a bunch of deadbeats can't pay their bills, I suffer with jacked-up interest rates, thus making it harder for me.

Mortgages weren't as big of a concern for future lending needs because buying a house is far different than buying a car or getting a post-secondary education.

Just think where interest rates will be if he have Obama in the WH, and Reid/Pelosi running Congress

We will relive the Peanut Carter years once again.

[mundame]

Hearings today (http://voices.washingtonpost.com/livecoverage/?hpid=topnews):

Shelby also asked Paulson if the bailout will buy assets owned by foreign investors and asked Paulson how he could rationalize that to American taxpayers, who are paying for the bailout.
Paulson said, yes, U.S. taxpayers will buy foreign assets and that the practice is "very easy" to rationalize, given that "we have a global financial system" and to avoid doing so would put the taxpayer at risk.


Ho, boy. I don't know about all that. You all okay with buying the bad securities of foreign banks?

[red states rule]

Hearings today (http://voices.washingtonpost.com/livecoverage/?hpid=topnews):

Ho, boy. I don't know about all that. You all okay with buying the bad securities of foreign banks?

I do not want any bailout - period

The free market will clean itself

Meanwhile, Dems are bellowing in their "hearings" how the problem was seen coming for years - yet Dems did nothing for the last 2 years

And what they said years ago, tell a different story. Dems were saying there was no problem. Perhaps the money Dems were taking from them shaped their opinions?