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White House to banks: Start lending now

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posted on Oct, 28 2008 @ 09:58 PM
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White House to banks: Start lending now


news.yahoo.com

WASHINGTON – An impatient White House prodded banks and other financial companies Tuesday to quit hoarding billions of dollars flowing into their vaults from Washington and start making more loans. Wall Street soared nearly 900 points on bargain-hunting and hopes of a hefty interest rate cut by the Federal Reserve.

The stock market's amazing climb, with its second-largest point gain ever, was a welcome burst of good news for a nation suffering big job losses and seemingly tumbling into a painful recession.

Consumer pessimism reached record levels in October amid rising unemployment, plunging home prices and shrinking retirement and investment accounts. The Conference Board, a private research group, said consumer confidence fell to its lowest point since it began tracking consumer sentiment in 1967.

Hoping to thaw the credit freeze that has chilled the economy, the Bush administration sent banks an unmistakable message to put aside fears and open up loan windows for cash-starved businesses and consumers who have pulled back on spending.

(visit the link for the full news article)




posted on Oct, 28 2008 @ 09:58 PM
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AS the article goes on to say... there is nothing they can do to make them loan out the money!!! Because there is no wording in the "bail out" bill that says they have to!!!!
Now what are they going to do? We paid these createns with our blood sweat and tears to allow this bill and now they tell us.OOPPS we are sorry but we cant make them do with the money what they are supposed to . If you ask me its time the people in business with these banks did a "bail out " on them.

news.yahoo.com
(visit the link for the full news article)



posted on Oct, 28 2008 @ 10:03 PM
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You can lead a horse to water but you can't make it drink.

Just no way Bush can force the banks to loan. And even if he could does that meaning loaning money to people who have no means of repaying the loans again.

Washington at its finest. This time they are getting a taste of their own medicine.



posted on Oct, 28 2008 @ 10:06 PM
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I'm a little bit confused.

The banks were supposed to have the money to fill up their coffers and prevent a run, right? So how is that hording?

And my gosh... the arrogance of this administration to pay lip service to the bad lending processes that got us into this mess, but then demand that the banks use the bailout to continue the problem!



posted on Oct, 28 2008 @ 10:09 PM
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I'm still a little confused on how the solution to a credit fueled economic meltdown is going to be.... more credit....

I think the bailout would have been better focused elsewhere than "donating" money to banks to try and get them to lend again... thus, putting people further into debt they can't repay...

It just seems like throwing gasoline on a fire to me...



posted on Oct, 28 2008 @ 10:20 PM
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Ive seen nothing but complaints on here and everywhere else since this crisis began. Nothing but armchair quarterbacking at best.

Lets try something different for all the brilliant minds on here:

Post YOUR solutions to this crisis on here and lets have some fun and poke some holes in some theories. =)



posted on Oct, 28 2008 @ 10:23 PM
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Best believe they will make loans, they are going use that money to go gamble on wall street some more, also loan to foreign entities that will also gamble some more, has anyone caught on? these greedy financial institutions will horde what they can as long as they want, they will use the money for their own interests, now with consumer confidence at all time lows who will really go putting themselves on the line to borrow money? first of all lending standards are tighter than ever.



posted on Oct, 28 2008 @ 10:33 PM
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TREASURY= CARTEL
US CURRENCY=CRACK
BANKS=CRACK DEALERS
MAINSTREET=CRACKHEADS

IF THIS WAS THE 60'S/70'S, DON'T YOU THINK THE CRACK DEALERS WOULD BE PUSHING THE GOODS...

...SORRY FOLKS THIS IS 2008/09


...forgive me folks...I'v read just a little to many posts and just a little upset. (with the help of tom collins)



posted on Oct, 28 2008 @ 10:41 PM
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Originally posted by princeofpeace
Ive seen nothing but complaints on here and everywhere else since this crisis began. Nothing but armchair quarterbacking at best.

Lets try something different for all the brilliant minds on here:

Post YOUR solutions to this crisis on here and lets have some fun and poke some holes in some theories. =)


ok
you asked for it and here it goes!

I believe the solution lies somewhere in between a massive bailout, and a modified McCain plan...

McCain's plan is to have the government buy up and re-negotiate the home loans at the current (lesser) value of the home loan..

Well, my solution for the economy starts at its roots... The basic cause of the meltdown is the bad loans and collapse of the housing market. The average person cannot pay their loans off, which means the bank has to absorb the loss.

Make it possible for the banks to collect their money from these loans.

How we do this:

Instead of the bailout going towards the banks to keep them from collapsing, we should allow the government to purchase these bad morgages. Once the government purchases them (at a discount from the bank of course, so that they aren't completely absolved of having to pay for the poor decisions they made in loaning this money to begin with), they hold the deed, and talk to the home borrower.

Once the government owns this property, they can then negotiate the terms of the loan with the homeowner. I think there should be a hiatus on foreclosure not to exceed two years for these distressed homes. This will allow the homeowners to get back on their feet, and in a position once again where they can hopefully pay their morgages...

The Borrower would pay on the full value of the borrowed money, so they aren't getting off scott free for their poor decision in obtaining a loan beyond their means.

I would make enrollment in this program voluntary, per the homeowner (not the bank). After you apply to join this program, you would be evaluated for eligibility, and the terms would be set in stone as to a repayment plan. Enrollment in this plan would also means the government owns your tax return for the duration of the period of relief (that not-to exceed 2 years period I discussed earlier), and the refund would be applied toward the balance owed...

The banks get most of their money back, and don't have to deal with it anymore. The homeowner gets to stay in their house, the government makes a profit, since the homeowner is still liable for the full balance remaining on their house, even though the government purchased it at a discounted rate.

Any default in payment to participants in this program would undergo re-evaluation for a possible extension in the term of the loan (20 yr vs 30 yr etc). If they still fail to make payments, the house would be foreclosed and the occupants evicted.

Then the government would use the home for subsidized housing for families.

Thats the plan I've thought up in my noodle... what do ya think?



posted on Oct, 28 2008 @ 10:57 PM
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Originally posted by nj2day
I'm still a little confused on how the solution to a credit fueled economic meltdown is going to be.... more credit....





This is nothing but life support plain and simple. For those who still don't get it, this isn't so much about bailing out the banks and getting them to lend as it is about extending the current economy long enough so when it doesa come crashing down the ones pulling the strings will have all their bases covered in the plan to go to a cashless society and one world government.



posted on Oct, 28 2008 @ 11:01 PM
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I only look at it this way...

1. Government sees that the economy needs to be delt with.
2. Treasury makes a plan to "help out main street"
3. Treasury (behind doors) lets make a plan to show mainstreet how we plan
to implement this.
4. Then "WE NEED TO KNOW HOW IS THIS GOING TO BENEFIT US"

I know I will never see any of that money. All it does is get the banks back to where they were 1 year ago. (and don't get me started on them sending money to oversea banks)



posted on Oct, 28 2008 @ 11:02 PM
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as i posted on another thread i will post something similiar here

banks need to lend to keep this consumer driven economy going.

so yes more lending/ debt = more breathing for the economy

what needs to happen for more lending is more credit worthy people demanding loans, the credit worthy tend to live more within there means, they are sensing a very shady jobs market going forward and they are not to keen to be burned by another bubble so they don't really have much incentive to take out big loans, those needing the money the most (to pay other debts come due) are less credit worthy and thus banks will not beleive they will be paid back (so they won't lend)

The solution to this problem is a form of debt cancellation. one method could be revaluating the currency so that we wake up and hear each dollar is now worth two. or in other words our wages are doubled but also prices are doubled (i.e business revenue's) this would in effect bring Down our level of consumer debt (making us more "worthy" and willing to take on more loans/debt. The revaluation would in effect reduce the % of our debt to income ratio by half. Empires/country's have done this before when the fractional reserve lending sysetm has run it course (where people can no longer service there debts. Many economist are betting on a more traditional method of reflation/ inflation, especially since we have fiat currency's (which govt's can inflate) but the fed can inflate but they can't get the money into the people's hands (i.e make banks lend, or make people demand loans) , reflations throughout history do not work well when people have such a high level of debt to income ration. and minus a revaluation in currency there are no wage rises that are coming down the pike and bailing out only the financial big wigs and consolidating finanical power houses (currently occuring) does not help the economy which will tank until something drastic is done, since our service economy is heavily exposed and suseptible to a reinforcing downward spiral in employment and consumer spending. the rest of the western world is F'D because they have a VERY LARGE banking exposure to the emerging markets whose growth is slowing at an alarming rate of late.

also to add insult to injury, the NWO agenda is the REAL DEAL. it is really just a plan to maintain power (actually gain power) during a time in which the world's ability to service debt's is going to be hampered and some debt cancellation will be necessary to keep the whole system from imploding into a century's long dark age . what i believe we may see is the gov't (i.e tentacle of international finance that tells gov'ts what to do) acting deliberately slow or just stupidly slow on the part of main street and waiting till the initially deflationary depression leads to "blood on the streets". The reason they would do this is because

1. revaluation of the currency is a drastic step

2. the pain from the coming depression that is initially deflationary would bring enough pain (which = leverage) to get people to accept a fascist one world gov't and all the loss of freedoms and intrustions of privacy (micro-chip). this pain and need to react slowly to the crisis would get people to clamor for something....anything to be done.........and they would see this new system of control (fascist NWO /One world gov't.........which allows the elite's to maintain there power) as the answer they would willingly accept. Don't accept it and become a debt slave or live off the grid as a criminal. Accept it and the new rules and watch you debt's be monetized (reduced) don't get too happy though, life in the NWO will be a struggle for many and millions more may die during the period when the pain is allowed to be ratched up to get people to clamor and then accept such a fascist solution (which of course will be painted as a world peace and economic solution)

this is a possible scenario, but who knows



[edit on 28-10-2008 by cpdaman]



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