Paulson Says Troubled Assets Will Not Be Purchased

[Marie26]

Source: Associated Press

WASHINGTON – Treasury Secretary Henry Paulson said Wednesday the $700 billion government rescue program will not be used to purchase troubled assets as originally planned.

Paulson said the administration will continue to use $250 billion of the program to purchase stock in banks as a way to bolster their balance sheets and encourage them to resume more normal lending.

He announced a new goal for the program to support financial markets, which supply consumer credit in such areas as credit card debt, auto loans and student loans.

Paulson said that 40 percent of U.S. consumer credit is provided through selling securities that are backed by pools of auto loans and other such debt. He said these markets need support


Read more: http://news.yahoo.com/s/ap/20081112/ap_on_bi_ge/financial_meltdown

[sinkingfeeling]

1. Time for Paulson to go!

[HopeHoops]

4. Maybe Obama can offer him a new position - GOP Cry Tissue Picker-Upper

[DS1]

2. higher stock prices simply mean bigger exec bonuses

throw this fucker in jail too

[HopeHoops]

3. Oh gee, I am just SO SHOCKED that they did what they ORIGINALLY PLANNED instead of what they sold !

[Marie26]

5. Thank God It Passed! :) nt

[fascisthunter]

7. lol

you better place a sarcasm emoticon... lots of newbies here.

[harun]

6. Those banks that came out and said they were going to give the bailout money

to their shareholders in the form of dividends have to a feel a little stupid right now.

[mzmolly]

8. Sounds like the Obama plan? An equity stake vs. a give away?

:shrug:

[dbonds]

9. Obama's plan had us buying the troubled assets where we could resell them in the future.

This was the whole point in getting the money back out of the bailout.

[Old Codger]

10. funny isn't it

A while back they HAD to have that money right now or we would face total chaos, and they were talking about right this minute before the weekend was over....Now we find that maybe there wasn't any real rush on it, they haven't even really formulated a plan on how they are going to do this.. maybe this, maybe that Pretty sad but not surprising. In the end the money will end up in the pockets of someone high up who is friendly with * and Co. :wtf: BSAU

[McCamy Taylor]

11. Bush LIED Again. Still not too late to impeach somebody. We own worthless stock

instead of owning the real estate that they promised would repay our investment 4 or 5 years from now. Wait. I take that back. We do not even own the stock. They own the stock. We just gave away money to prop up their stock so that the people who own their stock won't take a loss---and that means the executives who run the companies.

This is bullshit. John McCain should be hopping mad. He was sold out by Bush and Paulson so that they could line the pockets of the mortgage banksters who have ripped off the country. They preferred grand theft and then Obama to McCain and maybe not getting their hundreds of billions.

[D-Lee]

12. Works only if one buys the bank's un-issued "treasury" stocks

Otherwise, we would just be covering short sales, rewarding short sellers, and not doing anything for bank balance sheets.

Or maybe we are going to buy from those corporate insiders who need a further reward for creating the mess?

I'd ask "where did we get these people?" but we all know the answer to that one ...

[HopeHoops]

13. MORE proof the "Wall Street Welfare" bill was a stinking pile of elephant crap

[bdamomma]

14. Paulson is a thug too.

anyone acquainted with the Bushies are nothing but thugs.