MAIN STREE--Where is the money?
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GET THE FACTS behind the NEWS
To make the recession painless the federal gov't has agreed to spend $300 plus billion on bailouts of various companies plus $750 billion to ease banking liquidity. This does not include $160 billion economic stimulus payment with talk of another stimulus program probably as much or more. This is in addition to a $417 billion budget deficit.
However what is happening is that the large banks are sitting on the public money to protect against their own losses. If financially well off, with the approval of Treasury Secretary Paulson. theyare looking to acquire banks or their assets at bargain prices. .
Now a new complication. On Nov. 3, 2008 the Federal Reserve reported its latest quarterly survey of bank lending practices. The Federal Reserve said that a high number of bank reported they had made it tougher to borrow across a broad range of loan productsâ??. 60% of the banks had tightened credit card debt, 80% had tightened business and commercial loans. 95% raised costs for lines of credit to large and medium size business. 50% of domestic banks said they â??were somewhat or much less willingâ?? to make consumer installment loans This report was for Oct. 1-15th.
WASHINGTON Nov. 19 The Treasury secretary, Henry M. Paulson Jr., on Tuesday rejected pleas to use money from the $700 billion bailout program to help homeowners avoid foreclosure or to stave off bankruptcy by Detroitâ??s Big Three automakers.
Mr. Paulson acknowledged that he had the authority to use bailout money for homeowners, but he insisted that the money should go toward investment in financial institutions rather than spendingâ on rescue efforts.
We have seen that capital purchases are clearly powerful in terms of impact for dollar of investment, he said.
FEDERAL FINANCIAL HELP IS NOT GETTING TO MAIN STREET.
Next, what are others doing to help.
To make the recession painless the federal gov't has agreed to spend $300 plus billion on bailouts of various companies plus $750 billion to ease banking liquidity. This does not include $160 billion economic stimulus payment with talk of another stimulus program probably as much or more. This is in addition to a $417 billion budget deficit.
However what is happening is that the large banks are sitting on the public money to protect against their own losses. If financially well off, with the approval of Treasury Secretary Paulson. theyare looking to acquire banks or their assets at bargain prices. .
Now a new complication. On Nov. 3, 2008 the Federal Reserve reported its latest quarterly survey of bank lending practices. The Federal Reserve said that a high number of bank reported they had made it tougher to borrow across a broad range of loan productsâ??. 60% of the banks had tightened credit card debt, 80% had tightened business and commercial loans. 95% raised costs for lines of credit to large and medium size business. 50% of domestic banks said they â??were somewhat or much less willingâ?? to make consumer installment loans This report was for Oct. 1-15th.
WASHINGTON Nov. 19 The Treasury secretary, Henry M. Paulson Jr., on Tuesday rejected pleas to use money from the $700 billion bailout program to help homeowners avoid foreclosure or to stave off bankruptcy by Detroitâ??s Big Three automakers.
Mr. Paulson acknowledged that he had the authority to use bailout money for homeowners, but he insisted that the money should go toward investment in financial institutions rather than spendingâ on rescue efforts.
We have seen that capital purchases are clearly powerful in terms of impact for dollar of investment, he said.
FEDERAL FINANCIAL HELP IS NOT GETTING TO MAIN STREET.
Next, what are others doing to help.
