DISQUS

wooD · 1 year ago

Frying pan to fire. My latest webcomic series (http://facebigelow.blogspot.com) is parodying the creation of the Federal Bureau of Bailout. Funny since it even includes a house in the Hamptons (thursday or friday) so we must think alike.

Lisa_P · 11 months ago

There was some lingering hope that Treasury Secretary Henry Paulson might use a generous portion of the $700 billion bailout plan’s funds to help out consumers with their devaluing mortgages. It has now been effectively dashed, as it is clear no such thing is going to happen. A good chunk of the remainder is going back into the consumer credit market, such as car loans, student loans, and credit cards. Since it is a form of consumer credit, payday cash loans should be getting a portion, but there will be none made available to that industry, whose usual customers have either no credit or credit difficulty. Paulson wants normal avenues for consumer credit to remain open, such as car loans, student loans, and credit cards; these normally open lines of credit have become far slower or even frozen with “illiquidity.” “This is creating a heavy burden on the American people and reducing the number of jobs in the economy.” Inexorably so, but has anyone else seen what is going on here? Paulson has admitted a mistake with the earlier strategy of the plan, including massive banking bailouts. If only America had a President willing to admit his mistakes. We do have to pick up the pieces and move forward, but certainly some things could have been avoided. However, government officials are doing something right by encouraging investors to return to the market with the bailout. If the investors return, then confidence and jobs could start returning to the world market, and fewer people may have to rely on payday cash in tough times. Sure, it is a good tool to have sometimes, but it isn’t a long term solution.

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