Should the Federal Reserve Bank be pushing for more consumer and commercial real estate borrowing?
There is a " Term Asset-Backed Securities Loan Facility " whichi is supposed to " get credit flowing more normally again," It is for a trillion in lending for households and businesses, especially commercial real estate which is not doing so well lately
"Under the program, which got off to a slow start in March, the Fed provides loans to investors. They use the money to buy newly issued securities backed by auto and student loans, credit cards, business equipment, commercial real estate and loans guaranteed by the Small Business Administration."
Do you think this will get us out of the recession, or do you think it will get us into deeper trouble?
http://news.yahoo.com/s/ap/20090925/ap_on_bi_ge/us_bernanke
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5 comments
smellyfoot ™ on September 27, 2009 at 7:07 am
The phrase "get credit flowing normally again" is throwing a red flag for me. "Normal" credit flow for the last decade has been irresponsible…..I say stick to straight-edge lending. It may take longer to boost the economy, but at least it won’t be an artificial boost that will end in another credit bubble bust.
Viva La Resistance (Honor&Glory) on September 27, 2009 at 7:07 am
The Federal reserve shouldn’t even exist
DAR on September 27, 2009 at 7:07 am
We need to audit it and end it not give the federal government and fed unconstitutional power over how consumers run their affairs.
Hearing on audit of the Fed under Ron Paul’s HR 1207 ongoing now. It has so much support they can’t actually stop it (it has more than 2/3 of the house as cosponsors and could pass on suspension) so opponents are trying to get it passed ‘as part of the entire regulatory overhaul’ rather as a stand alone bill. Except that without the audit we have no assurance they work in our interest at all.
gov. of, by and for the sheep on September 27, 2009 at 7:07 am
The federal reserve should be audited and then abolished.
Mr. on September 27, 2009 at 7:07 am
Like or not…believe it or not….wealth in this country is created out of debt…(loans). The caveat is that those loans have to be repaid in order produce the wealth.
Without lending, there is no business, there is no high value consumer purchase. The US economy is driven on the consumer’s ability to buy things they cannot afford to pay for all at once.
Right now, the largest banks in the US are holding about a trillion dollars of OUR MONEY…. which was given to them in order to get lending moving again. That hasn’t happened quickly enough….. and a lot of people feel the banks are hording our money.
What do you get when you have a successful small business that wants to expand…they want to hire people… but they can’t get a loan from the same bank they’ve used since their inception ?…. you get a missed opportunity to create wealth and jobs.