U.S. Tries a Trillion-Dollar Key for Locked Lending

[many a good man]

Source: New York Times

Credit cards, home equity lines, student loans, car financing: none come cheaply or easily in these credit-tight times. The banks, the refrain goes, just will not lend money.

But it is not simply the banks that are the problem. It is also what lies behind them.

Largely hidden from view is a vast financial system that serves as the banker to the banks. And, like many lenders, this system is in deep trouble. The question is how to fix it.

...

The Obama administration hopes to jump-start this crucial machinery by effectively subsidizing the profits of big private investment firms in the bond markets. The Treasury Department and the Federal Reserve plan to spend as much as $1 trillion to provide low-cost loans and guarantees to hedge funds and private equity firms that buy securities backed by consumer and business loans.

Read more: http://www.nytimes.com/2009/02/20/business/20lend.html?partner=rss&emc=rss

[ixion]

1. gee, wouldn't it be great if the did this for everyday folk, rather than

the very same companies that created the mess?

I mean, wouldn't it be really, really helpful if consumers had access to low-interest loans in order to consolidate their debt and actually have a shot at paying if off?

It seems to me that the really helpful things that could be done to eliminate this problem are simply not being done. All 'stimulus' goes to the same set of people over and over again.

Why the hell do hedge funds and private equity firms deserve a handout?

It's OUR MONEY, albeit borrowed. WE ARE RESPONSIBLE for paying it back. Not hedge funds.

[Baby Snooks]

2. Change you can believe in...

And if you believe in it at this point I have a bridge in Brooklyn I have for sale. Pre-foreclosure. Make me an offer.

Sorry but it appears that Barack Obama has decided to represent the haves and have-mores. The latter also known as the stole-mores. They stole from the haves who have become the have-nots.

Ain't oligarchy grand?

[high density]

4. no kidding

Nationalize Citigroup and Bank of America and use those as vehicles for the government to directly compete with these other banks that refuse to lend to people and businesses. Get rid of these middle men that intend to do nothing but hoard the money.

[dysfunctional press]

3. nationalize consumer banking.

that's my position, and i'm sticking to it.

[many a good man]

5. Bailing out hedge funds? Isn't this insane???

Maybe its about time we eat the rich.

[jkappy]

6. "F" for Obama on Economic and War Fronts

Nationalize the Banks!! Bring all the troops home!! Get it?