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road kill
12-09-2009, 10:22 AM
President Obama Urges Banks to Lend MORE!!

http://www.politico.com/news/stories/1209/30388.html

ducknwork
12-09-2009, 11:54 AM
In the famous words of Homer Simpson: DOH!

That picture in the article is one of the first pictures I have ever seen published of him that is not necessarily flattering or taken in a way that makes him look incredibly thoughtful or studious. Probably means nothing at all, but I thought it was interesting.

Roger Perry
12-09-2009, 12:11 PM
This was a Bush program

The Troubled Asset Relief Program that Congress passed during the height of the financial crisis in October 2008 was scheduled to expire at the end of the year. Geithner said it will be extended until Oct. 3, 2010. He has the authority to extend the TARP simply by notifying lawmakers.

DOH!

Gerry Clinchy
12-09-2009, 12:18 PM
It IS, indeed, Geithner, on O's watch, who is doing the extending. I'm sure Geithner and O will take full credit for any success it may have ... and not give the credit for any success to Bush :-)

ducknwork
12-09-2009, 12:21 PM
This was a Bush program

The Troubled Asset Relief Program that Congress passed during the height of the financial crisis in October 2008 was scheduled to expire at the end of the year. Geithner said it will be extended until Oct. 3, 2010. He has the authority to extend the TARP simply by notifying lawmakers.

DOH!

Did you read the same article I did? I didn't see anything about TARP. It was about Obama wanting banks to lend more money to customers...

DOH!

From the article I read...


The lending issue irks some in the industry. “The White House’s political people like [senior adviser David] Axelrod tell us to lend more,” said one banking official. “But the regulators are saying the exact opposite. They’re saying, ramp up your capital ratios, and if you see default risk on the horizon, cut back on lending.”

Roger Perry
12-09-2009, 12:39 PM
In a letter to House and Senate leaders, Geithner said the extension is "necessary to assist American families and stabilize financial markets (http://www.msnbc.msn.com/id/34341033/ns/business-economy_at_a_crossroads/#)."

The fund's focus going forward, however, will be on reducing home foreclosures, helping small banks and turning up the spigot of credit for consumers and small businesses (http://www.msnbc.msn.com/id/34341033/ns/business-economy_at_a_crossroads/#), Geithner said in the letter.

One focus is stepping up efforts to curb record-high home foreclosures, a move necessary to stabilize the housing market and support a lasting economic recovery.
Another will be providing capital to small banks, which play a crucial role in providing credit to small businesses (http://www.msnbc.msn.com/id/34341033/ns/business-economy_at_a_crossroads/#) normally a leading engine of job creation. Small banks have been weighed down by problem commercial real estate loans, which has made them reluctant to lend and hurt the ability of small businesses to expand and hire.
In a third area, Geithner said the government may boost its commitment to a program aimed at sparking lending to consumers and small businesses. Run by Treasury and the Federal Reserve, the Term Asset-Backed Securities Loan Facility started in March.
Geithner said he didn't expect any new commitments to the TALF would result in additional costs to taxpayers.
In a report Wednesday, a TARP watchdog panel said the fund helped ease last fall's financial panic, but was less successful in meeting other goals Congress set including reducing foreclosures and unfreezing credit for consumers and businesses.

WaterDogRem
12-09-2009, 06:04 PM
Lending more to small businesses might be OK in some select low risk cases but to keep increasing the taxes on them goes against the whole purpose of small business leading us out of this continued recession.

To increasing debt and taxes, cheers Rog

JDogger
12-09-2009, 06:44 PM
I thought the business of banks was to lend money, rather then use their deposits to make risky investments.

JD

greg ye
12-17-2009, 11:32 AM
I thought the business of banks was to lend money, rather then use their deposits to make risky investments.

JD

If I am not mistaken, President Clinton repealed Glass/Steagal and at the same time, directed Freddie and Fannie to create an avenue for home ownership to increase by 10%. So at this juncture, we have banks creating profits by trading v. lending and interesting enough, banks love to trade Collateralized Debt Obligations which are the same vehicles that brought this country to its knees. There has been nothing done to prevent a similiar collapse in the future except for one shining star- John McCain has recently started talking about reinstituting Glass/Steagal!!!!!!!

K G
12-17-2009, 12:42 PM
A good friend of mine had a fit 10 years ago when glass/steagall was repealed. He screamed his head off to anyone who would listen, was active politically, in a small town way, and got NOWHERE!! My only point here is that Gary is a very intelligent and aggressive person, a financial adviser that knows economics and business. If he wasted his breath for 10 years, what the hell can the rest of us, much less informed, do about this happening all over again? Gary told me the other day that nothing meaningful has been done, even now, to prevent that very thing. Seems hopeless.
Walt

All you have to do, Walt (especially on this forum...:cool:) is remember that EVERYTHING we are going through now...EVERYTHING, up to and including our current President's decisions, is Bush 43's fault.

EVERYTHING....;-)....it's simpler to do that rather than argue with folks that WON'T know any better....

kg