So the single most important factor that the FED gave in passing the $750B bailout was to buy troubled mortgage assets off banks and sell them later for a profit.
Today they reversed the entire principle the bailout was based on!
Just when we think it's gotten so insanely crazy that there is no human way possible to get any more wild...
Now they claim they want to invest in credit card companies (they made American Express a bank so that they can claim easier money from the Gov) and auto companies. Incredible is all we can say about today's revelations.
"I believe we have taken the necessary steps to prevent a broad systemic event. Both at home and around the world, we have already seen signs of improvement," Paulson said in a speech at the Treasury Department.
This is the same guy that said at the very beginning that the economic troubles were confined to the subprime loan market only. He read that one a tad bid wrong when it spread to the entire US economy and eventually the world!
As an industry insider I can tell you that banks ARE NOT lending and have only further tightened their restrictions on borrowers. We look forward to seeing how this news will play out with interest rates, lending restrictions, and the overall health of the economy.
Wednesday, November 12, 2008
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