why can't the gov't loan the money to those who need directly?

[radbag]

instead of lending to the banks so that they might lend to 'the street', why not have the gov't lend to small business owners, potential foreclosure victims, and/or those in need directly?

thoughts?

[MinGator]

Gov't would have to hire underwriters and staff to do that?


Which might create jobs......hey, where are you going with this?

[annarborgator]

There's no way, IMO. Supposedly the reason TPTB decided not to do the aggregator bank idea was that it's impossible to work practically because there are thousands of banks. Now how is the gov't going to deal with millions of homeowners and small businesses who need bridge loans?

I think you're barking up the wrong tree, but that's just me....I don't think we should be trying to get lending going again. Peak credit is over and done, IMO and we are living in a different world. I don't think we can put the rabbit back in the hat and have everyone go get a car loan and a new credit card and solve all our problems. Why must so many consumers and businesses rely so heavily on credit? And trust me, I'm just as guilty of enjoying the credit boom (check out my student loans HA!)....I'm also trying to think about it objectively. It doesn't seem like we can go back.

[radbag]

just thinking aloud.

capitol hill is talking about how the constituents do not trust banks...they're talking about how these CEOs are irresponsible...."shameful"...greedy...motivated by money.

capitol hill is doubling the deficit today

capitol hill wants money to get to those who REALLY need it

capitol hill wants to be in the bank business obviously

capitol hill reports to the taxpayer

capitol hill thinks the banks are not doing with the TARP money that they should be doing with that money...lending.




kind of makes sense that the gov't do it themselves no?

[MinGator]

Constituents don't trust capitol hill either. IMHO, less than banks.

[radbag]

There's no way, IMO. Supposedly the reason TPTB decided not to do the aggregator bank idea was that it's impossible to work practically because there are thousands of banks. Now how is the gov't going to deal with millions of homeowners and small businesses who need bridge loans?

I think you're barking up the wrong tree, but that's just me....I don't think we should be trying to get lending going again. Peak credit is over and done, IMO and we are living in a different world. I don't think we can put the rabbit back in the hat and have everyone go get a car loan and a new credit card and solve all our problems. Why must so many consumers and businesses rely so heavily on credit? And trust me, I'm just as guilty of enjoying the credit boom (check out my student loans HA!)....I'm also trying to think about it objectively. It doesn't seem like we can go back.

(i'm getting off the subject and i apologize)

see - this is where i respectfully disagree.

we will see buying of homes again and we will see buying of cars and luxury items again....the big issue is CONFIDENCE (or lack of)...if/when consumers gain confidence again, the economy will get back into greater health...confidence comes in the form of jobs (and for those who HAVE jobs it could come with job stability), good corporate earnings, foreclosure solutions, a successful war.

something diversionary

[MinGator]

wag the dog.

[annarborgator]

(i'm getting off the subject and i apologize)

see - this is where i respectfully disagree.

we will see buying of homes again and we will see buying of cars and luxury items again....the big issue is CONFIDENCE (or lack of)...if/when consumers gain confidence again, the economy will get back into greater health...confidence comes in the form of jobs (and for those who HAVE jobs it could come with job stability), good corporate earnings, foreclosure solutions, a successful war.

something diversionary

The animal spirits are dead, though, rad. O0