We've been watching as banks continue to hoard the bailout funds, maybe buy up some other banks, but nothing has trickled down to Main Street. Well, the Federal Reserve announced today that it's committing up to $800 billion to make it easier for Main Street folks to borrow money for cars, tuition bills and new homes. The Treasury Department is giving up very little of its Congressional bailout funds -- just $20 billion -- to the Fed's consumer lending program.Did Congress really intend for so little to go to Main Street? I doubt it and I hope that when Henry Paulson comes begging for the second half of the bailout he's told it's not his to spend. Congress might want to wait for the new administration because many are not happy with how Paulson is spending it.
I'm glad to see the Fed is moving in a much more appropriate direction to help get Main Street back on track. The Fed intends to provide up to $200 billion to investors who plan to put the money towards consumer loans, such as credit cards, auto loans and student loans, as well as some forms of small business loans. These will be in the form of one-year loans available only for newly-issued consumer debt. These type of loans totally dried up in October and are essential to get the economy moving again.
In addition to consumer spending, the Fed announced it would buy up to $100 billion in mortgages held by Fannie, Freddie and the Federal Home Loan Bank to increase the cash available for the housing markets in the hopes to lower mortgage interest rates and encourage folks back into the housing market. The Fed may also buy another $500 billion in bundles of mortgage backed securities issued by the same agencies. The program will be announced later this morning by the Fed and the Treasury Department.
Lita Epstein has written more than 25 books including "The Complete Idiot's Guide to Improving Your Credit Score" and "The 250 Questions You Should Ask About Buying Foreclosures."











Reader Comments (Page 1 of 2)
11-25-2008 @ 10:33AM
rjbthere said...
There is a right way to help alot of Americans .For the last eight years there has been Scams after scams .By the Banks loaning money out to scam loan crooks that use money only to loan out for the second time at a higher rate to Americans with less than perfect credit rate.There is no reason for banks that get Goverment Bailout to continue letting Banks to do this.Money should not be second loaned to loan sharks to put people deeper in debt .I hope this new president will put a stop this,and not to keep Bailing out banks that do busness this way.CREDIT AMNESTY TO THE AMERICAN PEOPLE ,REMOVE THE THREE CREDIT BUREAUS,create one fair credit Bureau that will work with people at no cost.No wonder Bush had Paulson for Treasury There only intress are the pigs greedy crooks that detroyed this country.That will walk away only to suport the next Republican ,that will work there way.Bush should be held accountable.
11-25-2008 @ 11:15AM
Merlynn Bays said...
We the PEOPLE need a financial bail-out. The government needs to approve us a one time penalty FREE loan from our retirement/PST to pay bills, etc.
If we already have an outstanding loan against our retirement/PST we should be allowed to use our retirement funds to pay-off the loan penalty FREE.
If OUR government can bail-out the automobile industry and financial institutions, surely they can allow us to use our own money as a bail-out!!
11-25-2008 @ 11:57AM
Marty said...
Small Business is the backbone of this country, and we are the ones that need a helping hand, not a handout. Business is slow, profits are down, Banks won't loan money, vendors want to be paid,(as they should), we are drowning. Without some kind of loan to get me through, I will be out of Business soon. This means my employees loose there jobs and I loose my home and everything I've tried to build for the last 4 years. I've never looked to the Government for assistance, but now is the time, they need to develop a program specificaly for us. Many other Small Businesses are in the same situation that I am, Lets hope they do something before the Big Chain Stores are the only place to shop!
11-25-2008 @ 12:04PM
chris m said...
This is a trickle down bailout. All they have done so far is protect the banks for when your business goes under because they can't borrow any money to keep it afloat during this lean time. So yes, your business and employees will be hurt. But at least they have enough cash on hand to pay bonuses to VP's and up.
11-25-2008 @ 12:18PM
tuddy812 said...
Cant you see whats happening here,obama is not going to fix anything no matter how much he preaches that he is.with a our taxpayer money and 3-4 years of a presidential term will fix anything in the economy.hell it cant get much worse then it is now,so all these 700 billion and 350 billion and 25 billion of our money here and there everything will be A-OK execpt for our bank accounts.unemployment hasnt topped out yet it is going to double before it does.i have faith in the Obama Adminstration not the fact that he is going to turn the economy around,time heals all wounds my friends wait and see.
11-25-2008 @ 2:16PM
R.J said...
Great,just what these losers need,someone to bail them out,again! I pay my bills and are getting tried of paying everyone elses bills because losers have been living above there means,who and the hell is going to bail me out when I have been taking for a ride because of all these damn idiots who had no business have the homes and cars they could not afford,this is there fault and no one elses,sink or swim,I hope they all sink.They are deserve whatever the get!
11-25-2008 @ 1:06PM
LZ said...
This is ridiculous for the government to continually bail out the banks, however, what about the consumers/general population that are struggling because either they were laid off, cannot find work, company after company is folding or business is so slow they are cutting down on hours? What about us which makes up the middle class population. What about the illegal immigrants who are making salaries from companies who pay cheap labor in order to save their business and collect welfare, food stamps, etc. off our illustrious government? These are all factors to be taken into account when the government is thinking about bailing out a bank or financial institution. If the general public cannot support themselves, how can they take out loans they cannot pay back without a job?
11-25-2008 @ 12:53PM
CB said...
every one is talking about the bail out but no one has actual said how it is going to help the common person that gets up every morning and goes to work and still can meet the bill. what about the people that makes less than $20,000 per year? Than they are talking about people that makes less than 250,000 a year gets taxes cut????????
11-25-2008 @ 1:01PM
roger said...
add it up,, if the govement gave each taxpayer 425,000 each,,number one i will pay off my loan,,two,, put money a way for my kids schooling,,all so buy a new car,,put the money in a c./d for one year,,all so the tax man will love me,, ,i can not see gaveing or tax money to main street,,and the bankyyy so the bank can buy new bank,,,?????
11-25-2008 @ 1:05PM
John said...
Spending more tax money will only make the problem worse in the long run.
11-25-2008 @ 1:06PM
Bruce said...
Best idea yet. Give every documented (IRS keeps GOOD Records) AMERICAN $250,000. each, with the stipulation that it can only be spent on cleaning up their credit, paying off their home and buying a new American made automobile of their choice. Anything left over can be invested in the market or saved as a cushion. May be diverted into a college saving plan for their kids, or a MSA.
11-25-2008 @ 1:46PM
tom said...
the feds just need to give the people around 10000.00 stimulus checks and everyone will buy cars houses and retail sales will be up
11-25-2008 @ 1:22PM
Bobbie B said...
I think R.J. should calm down. We all paid our bills, on time and to zero balance. But whose to say everyone was living beyond their means. Obviously, when they first purchased whatever they did they could afford it. Sometimes circumstances do go beyond one's control. So don't hope that they all sink, because guess what, when they sink there will be nobody left to bail your sorry, lonely, hurtful self out. And if they could, why would someone want to help a person who actually finds joy in the pain of others. You would probably be the last one anyone with the resources would want to help. Which is probably how you grew up, always placed at the end of the line, the least valuable. Sorry buddy, there is nothing left for YOU.
11-25-2008 @ 1:25PM
Heather said...
There are about 300 million adults in the United States I see no reason why 300 million dollars can not be given to the people of the United States. Allow 500,000 of the funds to be reinvested with the government in form of bonds and the other 500,000 to be used first to pay down your home loan or to buy a home, and obtain an United States made energy effienct car. I'm sure this will stimulate the wall street and the cost is far less than even 1billion dollars.
11-25-2008 @ 3:19PM
R.J said...
I think Bobbie should wake up and smell the coffee,it is because of people like you that we are where we are.I never ask for anything,if I can't afford it I do not buy it,I live in my means and if that means being sorry then so be,but then again,I saw this all coming,
My house is paid for and so are my cars,by an honest long days work,should try it sometime,sink or swim sucker.Tired of of these losers wanting a handout,each takes care of there own,and that should be the way it should be,no bending the rules for anyone,that is how we ended up in this mess in the first place. A little thinking for a long term situation,it is called the future.Just so you know Bobbie,I own a house where I allow homeless people to stay in exchange for work,and they work believe me. As far as being sorry you sure are,isn't it funny what people say when you have spoken the truth.
A good wake up call,a society where everyone blames there problems on everyone else,that is called passing the buck,and I sit and watch people being walked out,you make think that ingorance is bliss,not in this case we are all going to pay for it.
Think of that the next time you by food,if you can afford it.
11-25-2008 @ 2:30PM
Larry said...
Regardless of what the Fed and Treasury do, the economic situation is not about to improve. The same goes for a proposed massive stimulus package. All of these things are probably necessary, to at least prevent another Great Depression. But let's face it: Until housing prices are seen by the public to have stopped falling, and about to begin rising again, however marginally, we are in for trouble. It will happen, as obviously the population continues to grow, people continue to get married and have children, we continue to have immigration into the country. At some point, there will be demand again for housing. That's it. Nothing else will really help very much.
11-25-2008 @ 2:33PM
Kathy said...
RJ Calm down. There are times when people do have unfortunate circumstances happen. There are times when one can't plan for a serious illness such as cancer, or lupus etc. There are many people, who for one reason or another are in a financial crises. I mean what would you say to a widow who just lost her husband to a dreaded disease and spent their entire savings on treatments. There are exceptions to EVERY situation. However, if you are sitting on your can of do nothing, have a ton of children, get a check for each one because you don't remember who the father is, get food stamps, free medical care, gas allowance and free housing; why don't you do yourself and others a favor and get a dang job. We are tired of paying for your sorry excuse for a human being. THERE DID I COVER BOTH CIRCUMSTANCES?
11-25-2008 @ 2:40PM
kathy said...
oh yes and RJ one more thing.....there is spelled their when it belongs to someone else. i.e. their attitude stinks.....there is a place i.e. over there
11-25-2008 @ 2:58PM
uncle buc said...
the last "economic stimulus "did not help !
why would another ?
never forget "give a man a fish and he eats today,teach him to fish,and he eats for ever "
economic stimulus should be money for roads ,bridges,county and state governments
brian
11-25-2008 @ 3:22PM
R.J said...
And I care,not!