In 2008 the United States government has come up with more acronyms that will go down in our history books for ever. The TARP act also known as the Troubled Asset Relief Program has basically evolved into a new plan called TALF, or Term Asset Backed Securities Loan Facilities. Essentially our government decided to abandon the idea of buying up troubled assets, and instead investing the nations failing banks.
It is my understanding that the TARP program was going to be originally used to purchase foreclosed homes. The intention was to stop home prices from further falling. However, Paulson has decided that it would be better to spend the bailout funds unfreezing consumer credit instead. Paulson is now using the TARP funds to inject more capital into our banking system in order to stabilize the economy.
Congress under the TALF fund has given away billions of dollars to financial institutions that otherwise might have failed without it. Paulson has been strongly criticized for allowing the failure of Lehman Brothers to take place. Congress has recently agreed to inject $20 billion into Citigroup, which has seen its stock price on a roller coaster ride. Around this time last year Citigroup stock was trading around $35 a share and has plummeted all the way below $4 a share. News of the bailout sent Citigroup stock soaring back up to around $8 per share.
The new bailout plan is designed to restore confidence in our banking system again. Our banks need to be healthy in order to be able to lend money to businesses and consumers who spend the money in our economy. Auto loans will help the failing American automakers to increase the sales it needs to survive. Credit cards will help our retailers continue to sell higher priced items that they would otherwise not sell as much. Student loans are needed in order to continue the spark of innovative and revolutionizing ideas that come out of our country. It is these ideas that will drive our future economies as well.
Henry Paulson has left the remaining 50% of the bailout funds for the Obama administration to administer. It will now be up to our new leaders to use these funds wisely and keep our economy from further implosion. As a nation, we must stand behind our current and new leaders and keep this country moving forward. Only time will decipher what the future has in store for our economy. One thing, I do know for certain is that one way or another our country will prevail.
It is my understanding that the TARP program was going to be originally used to purchase foreclosed homes. The intention was to stop home prices from further falling. However, Paulson has decided that it would be better to spend the bailout funds unfreezing consumer credit instead. Paulson is now using the TARP funds to inject more capital into our banking system in order to stabilize the economy.
Congress under the TALF fund has given away billions of dollars to financial institutions that otherwise might have failed without it. Paulson has been strongly criticized for allowing the failure of Lehman Brothers to take place. Congress has recently agreed to inject $20 billion into Citigroup, which has seen its stock price on a roller coaster ride. Around this time last year Citigroup stock was trading around $35 a share and has plummeted all the way below $4 a share. News of the bailout sent Citigroup stock soaring back up to around $8 per share.
The new bailout plan is designed to restore confidence in our banking system again. Our banks need to be healthy in order to be able to lend money to businesses and consumers who spend the money in our economy. Auto loans will help the failing American automakers to increase the sales it needs to survive. Credit cards will help our retailers continue to sell higher priced items that they would otherwise not sell as much. Student loans are needed in order to continue the spark of innovative and revolutionizing ideas that come out of our country. It is these ideas that will drive our future economies as well.
Henry Paulson has left the remaining 50% of the bailout funds for the Obama administration to administer. It will now be up to our new leaders to use these funds wisely and keep our economy from further implosion. As a nation, we must stand behind our current and new leaders and keep this country moving forward. Only time will decipher what the future has in store for our economy. One thing, I do know for certain is that one way or another our country will prevail.
Labels: apply for a credit card, Barrack Obama, biometric credit cards, business credit cards, credit card offers, credit cards, henry paulson, TALF, TARP
Credit Card / Financial news blog post by Todd Holliday at 6:09 PM 