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-Lurid Crime Tales-
Treasury handout plan could involve buying up distressed auto loans
2008-10-14
Barney Franks thinks ratings agencies have been too tough.
The U.S. government's $700 billion market rescue plan could assist automakers such as General Motors Corp (GM.N) by buying up distressed auto loans, a top lawmaker said on Tuesday. "Under the buying up of assets, they could buy up automobile loans," said Barney Frank, a Massachusetts Democrat who chairs the House Financial Services Committee.
Why am I not surprised that Barney's got his hands in this? He's been trying to undermine the banks and capital systems since day one ...
Frank also said U.S. banks receiving capital injections under a U.S. Treasury plan to infuse $250 billion into the troubled sector are expected to use the funds to support lending activities.
No, they're supposed to shore up their balance sheets ...
On Tuesday morning the Treasury Department unveiled more details of how it plans to implement the $700 billion bailout plan passed earlier this month, saying it would directly inject capital into U.S. financial institutions. It said nine banks have already signed on to the program; it did not name the nine.

Frank said the nine are "relatively healthy" and do not appear to be at risk of sustaining large losses from credit default swaps, insurance-like products that protect a bigger investment.

He also said he hoped private capital would follow the government funds. "There's a good chance that in at least some of these cases it will work well, and that would encourage private capital," Frank said. "We have to be careful not to insist on instantaneous results."

He said reforms will follow quickly, including global restrictions on leveraging and risk-taking, along with reform of credit rating agencies, which he said "made the mistake of telling us what they didn't know."
The rating agencies were near-fraudulent in their activities, but Frank isn't the fellow to call them on it.
While Frank has been a critic of rating agencies being too lax in the past, he said on Tuesday they now seem to be leaning too far the other way. "Now I think rating agencies in some cases have been too tough," he said. He was speaking following a meeting of the Urban Land Institute, a nonprofit research and education organization.
Posted by:Zhang Fei

#21  Is there anything they won't bail out?
Posted by Cornsilk Blondie

Yes - Honest, productive, hardworking, Americans who act responsibly.

In other words us.

My wife mentioned the other day (while watching Barney Frank and Friends) that its seems to be just as corrupt here as in the Philippines.
Posted by: CrazyFool   2008-10-14 19:02  

#20  I'd like to know where the Government was in late '91, early '92 when I was unemployed for 7 months, staring an eviction notice in the face, and just wanting some help feeding my family. I was told I'd have to sell my car because it eas worth 4500 bucks. I asked how the hell was I supposed to get anywhere without a vehicle and was told, "Those are the rules. Either sell the car or you don't get food stamps".
Posted by: Deacon Blues   2008-10-14 18:53  

#19  Is there anything they won't bail out?
Posted by: Cornsilk Blondie   2008-10-14 18:43  

#18  It may be coming to this soon:
Just stop paying your mortgage
"When a financial institution holds a mortgage, homeowners must live with the fear of foreclosure. Private institutions only have obligations to shareholders. In the case of a defaulting borrower, they will look to recover as much of their principal as possible. If foreclosure is their best option, they will take it in a heartbeat.

The government has no such obligations. Its only goal is to keep voters happy. After supposedly bailing out the fat cats on Wall Street, no politician wants to be accused of evicting struggling families. Once you understand this, all of your anxiety should melt away. Why pay your mortgage if foreclosure is off the table, and if you know that lower payments, and possibly a reduced loan amount, would result? A tarnished a credit rating is a small price to pay for such a benefit.

Unfortunately, this boon will not extend to those foolish individuals who either made large down payments or resisted the temptation of cashing out equity. The large amount of home equity built up by these suckers, I mean homeowners, means that in the case of default foreclosure remains a financially attractive option. As a result, these loans will be much less likely to be turned over to the government.

If your mortgage does become the property of Uncle Sam, the growingly popular impulse to “just walk away” should be replaced by “just stay and stop paying.” No one will throw you out. After a few months, or years, of living payment free, you will get a call from a motivated government agent eager to adjust your loan into something affordable."
Posted by: Anguper Hupomosing9418    2008-10-14 17:14  

#17  Good one, BR.
Posted by: Deacon Blues   2008-10-14 16:24  

#16  Paulson, won't you by me a Mercedes Benz
My friends all by Porches, I must make amends.
Worked hard all my life time
No help from my friends
Oh Paulson wont you by me a Mercedes Benz.

Everybody now...
Posted by: BrerRabbit   2008-10-14 16:00  

#15  While the song came from another annoying Barney, perhaps this Barney could use it to seranade his Wall Street butt buddies:

"I love you, you love me
We saved your ass with the Treasury
With a huge amount of pork and gigantic IOU
The masses might be broke,
But who else you gonna screw"
Posted by: USN,Ret.   2008-10-14 15:58  

#14  ARCLIGHT the Longworth Building.
Posted by: Nimble Spemble   2008-10-14 15:06  

#13  It's now a certainty - Barney Frank is the biggest Idiot in Congress. I know it took a lot of hard work to get there, but good ol' Barney has never stopped digging.

Frank also said U.S. banks receiving capital injections under a U.S. Treasury plan to infuse $250 billion into the troubled sector are expected to use the funds to support lending activities.

Of course, what Barney really meant to say is that the banks receiving the support should continue to engage in the fraudulent lending processes that got them into the mess in the first place. Good ol' reliable Barney Frank - never met a government program he couldn't screw up.
Posted by: Old Patriot   2008-10-14 14:57  

#12  #11, Illegal Alien meat packers?
Posted by: tipover   2008-10-14 14:54  

#11  Nothing like going shopping in Dodge City and seeing a couple meat packers get out of a tricked out $40,000 vehicle.
Posted by: swksvolFF   2008-10-14 14:49  

#10  Bread and circuses.
Posted by: g(r)omgoru   2008-10-14 14:36  

#9  Since I'm broke I guess I should go out and buy an new F-350 Diesel four-door dually with the Centurion custom package and ostrich skin seats. Then I can be gettin me some bailouts.
And 40 acres and a mule.
And a pony.
Posted by: bigjim-ky   2008-10-14 14:36  

#8  We could save ourselves a lot of money by paying Barney Frank double time to stay at home.
Posted by: Darrell   2008-10-14 13:25  

#7  Does The Fed have the authority to do this with taxpayers money?
Posted by: Bright Pebbles   2008-10-14 13:24  

#6  He is preventing global warming. All those torched cars were releasing entirely too much carbon dioxide into the atmosphere while burning.
Posted by: trailing wife    2008-10-14 13:13  

#5  Earned Escalade Tax Credit?
Posted by: Besoeker   2008-10-14 13:06  

#4  Yo, Barney. How about my 48" inch plasma?
Oh, that's right. I can't afford one. SO I DIDN"T BUY ONE, ASSHOLE!
Posted by: tu3031   2008-10-14 12:58  

#3  Oh goody! Uncle Barney wants to buy me a new pony!
Posted by: Skunky Glins****   2008-10-14 12:57  

#2  How about my yacht?
Posted by: Ebbang Uluque6305   2008-10-14 12:53  

#1  Does this mean I can keep the Escalade?
Posted by: Ebbang Uluque6305   2008-10-14 12:52  

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