Fed launches plan to revive consumer lending

The Federal Reserve and Treasury’s move Tuesday to pour billions of dollars into lending markets is an attempt to address the fundamental cause of the current economic crisis. Though concerns about the financial system have centered recently on traditional banks, the financial breakdown began when the market for securitized loans collapsed. .

[Lance Winslow]

What a striking difference from Bush administration give-aways to Wall Street financial moguls.

[Seeking Truth]

It's about time!

[ReasonableGuy]

Nothing will help till the time the President does not understand the role stock market plays in an industrialized society!

Welcome to stone age with Dow below 5000 and unemployment for 12%+ for multiple years! And a new President as dumb as the old one!

[hijos delos conijos]

so many yapping like the stock market is now part of the presidents duty.

[robb s]

Well, a tax increase will help us.. If we just pay double the tax, and everyone gets the same interest rate, we'll save just as much.. Inflate your tires and get a regular oil change, stop dragging the US taxpayers down..

[Carbone]

The lending will work as long as there are no Community Reinvestment Act provisions attached...

[Business Card]

While it is good that they are freeing up the money that we loaned them to loan us - Aren't we just getting right back in the same sinking boat if we encourage more consumer borrowing and spending? How is borrowing yet more going to get us out of this credit crisis? Isn't this how it all started? This is getting like the dog chasing his tail. How can people start buying new homes, when the amount they owe is often far more than the appraised value? How can people buy houses, when they can't sell the one they are in? Seems like we are just going to be playing "catch up" again.

[opinions]

I thought this plan was made last month. Is it still a plan? When will it become an action item?

Please fix the economy to where it was in 2005. Those baby boomers are the ones affected by this continuous downturn. There investments when they were young were back to the value or even less when they started. They have been RIPPED OFF by this economy. When they were in college, life was so grand for them with 2005 as the peak of their economic net worth. Then when Bernanke took over in 2006, the economy started tanking. Then when the Democrats took over congress in 2007, the economy went on a free-fall. It continues to be in a free-fall today. This is not a joke. Obama may think, oh we can just start over. These Baby Boomers have invested their money on the markets for about 20 years and now their savings are worth less.

This continuous free-fall in the economy is NOT a joke. This is real and it is affecting people's lives and SANITY.

People are GETTING very depressed about the future.

And I don't think anyone in the government gets it, right now as to how bad this free-fall in the stock market has affected the psychological health of the people who invested their life-savings only to find them to be on the way to being almost worth nothing.

Please help, Pres. Obama. Bring back the 2005 economy.

[Sheldon Clark]

Until the job losses are halted and the unemployed hired, consumers aren't going to start spending again. How do you loan money to people who cannot pay it back?

[leo from cornelia]

VULTURES ARE BACK!!! former COUNTRYWIDE MORTGAGE shark executives are scooping up homes from bankrupt people they gave phoney baloney mortgages. led by STAN "TEASER RATE" KURLAND, the hucksters are taking the suckers one more time. don't know if senator chris dodd is getting cut?

[ReasonableGuy]

Sheldon Clark wrote:

Until the job losses are halted and the unemployed hired, consumers aren't going to start spending again. How do you loan money to people who cannot pay it back?

Good idea - How about a Prez who just brought down the stock of all of the Pharma and Healthcare companies by 10%+? Now wait for layoff anouncements from the likes of J&J.

I am not buying a home till I know how much I am going to get taxed by the new socialist regime?????

[carey529]

Sheldon Clark wrote:

Until the job losses are halted and the unemployed hired, consumers aren't going to start spending again. How do you loan money to people who cannot pay it back?

"How do you loan money to people who cannot pay it back?"

THAT'S what started this whole fiasco!

[Eleanor]

carey529 wrote:

<quoted text>
"How do you loan money to people who cannot pay it back?"
THAT'S what started this whole fiasco!

EXACTLY !!! Fewer and fewer people are in the position to RESPONSIBLY borrow money. Lending money just to lend it, is absolutely ridiculous. Plus, with the economy the way it is, job loss and loan default is EVEN a GREATER possibility than it was last year. I agree with "carey529", this whole fiasco started by lending money to people who were very likely NOT able to pay it all back. Lending money to people with a proven financial track record is a good idea. Lending to anyone else is an irresponsible gamble.

[Danny_Livewire]

hijos delos conijos wrote:

so many yapping like the stock market is now part of the presidents duty.

Right.... when did the President of the USA, all of a sudden, become President of the Stock Market... OBAMA HAS NO RULE OVER THE STOCK MARKET!!!!

The reason why it's so low now, is because the public has lost faith in the system and nobody wants to buy into it anymore, so the prices go down....

THAT IS WHAT A MARKET DOES!!!

---

Want to know what created the economic crisis?

It was DE-REGULATION of the Banking Industry, courtesy of Bush, McCain, and the Conservative Ideology.....

From: http://en.wikipedia.org/wiki/Community_Reinve...

Regulatory changes 2005

In early 2005, the Office of Thrift Supervision (OTS) implemented new rules that – among other changes – allowed thrifts with over $1 billion in assets to meet their CRA obligations without regard to services for, or investments in, their communities.

The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, and the Office of the Controller of the Currency put a new set of regulations into effect in September 2005. The regulations included less restrictive new definitions of "small" and "intermediate small" banks. "Intermediate small banks" were defined as banks with assets of less than $1 billion, which allows these banks to opt for examination as either a small bank or a large bank.

---

They removed the requirement of banks to "re-invest" in the community they are operating in, and "Intermediate small banks" were created as a way for Banks to "opt-out" of regulations and examinations that were once required for lending organizations of that size.

If a Bank is no longer required to re-invest in the community that they profit from. The community runs dry and barren...

And if you allow a Bank permission to not be examined, they will practice predatory lending in the hopes of making more money...

This should be common sense.

If you remove the protections that were in place to prevent Banks (private organizations that hold and use your money) from miss-using the money they are responsible for protecting, it should be a no-brainer........ They will miss-use the funds.

[moneyteachers]

Here's a plan:

1. print more money until the dollar is virtually worth its weight in toilet paper.

2. send all manufacturing jobs overseas and import the finished goods back into the United States without tariffs.

3. Let international corporations and other organizations elect our leadership.

Oh, is that what we're doing already?

Got Gold: http://www.moneyteachers.org

[A Perspective]

ReasonableGuy wrote:

Nothing will help till the time the President does not understand the role stock market plays in an industrialized society!
Welcome to stone age with Dow below 5000 and unemployment for 12%+ for multiple years! And a new President as dumb as the old one!

Who is Wall Street? Do they think they're God now, or what? They are the BIGGEST fools. When each and everyone of them dies, their money does nothing for them. When the working man dies, God will have mercy. Now who is the real fool on the earth, eh? Wall Street is shell game, but GOD has a better shell game waiting for them.

[Sheldon Clark]

carey529 wrote:

<quoted text>
"How do you loan money to people who cannot pay it back?"
THAT'S what started this whole fiasco!

Indeed it was.

[Danny_Livewire]

I got a good plan: http://www.thedailyshow.com/video/index.jhtml...

Re-Instate the "Fairness Doctrine" that regulated news channels to report on BOTH sides of the issue..

If you think what major media tells you is true. Think again...

[Sheldon Clark]

Danny_Livewire wrote:

I got a good plan: http://www.thedailyshow.com/video/index.jhtml...
Re-Instate the "Fairness Doctrine" that regulated news channels to report on BOTH sides of the issue..
If you think what major media tells you is true. Think again...

NPR and Air America and that network that admitted Obama bias certainly could use mandatory conservative viewpoints :-)