Paulson will now use half of rescue plan for consumer loans; Democrats want help for car makers struggling to survive; Lawmakers, economists differ on bailout for car makers; Analysis by Sen. Sherrod Brown, (D) Ohio.
Via Bloomberg
Consumer Credit outstanding fell $14.8b in Sept seasonally adjusted, almost $5b more than expected and marks the 11th month in the past 12 of declines. At $2.456T outstanding, it is 4.9% below the record high in July '08. After a flat reading in Aug, (didn't fall b/c of the CARS program), non revolving debt outstanding fell by $4.9B. Revolving (mostly credit cards) balances outstanding fell by $9.9B. To fully put into perspective today's data, look at the current level of consumer credit (doesn't include mortgages, the biggest chunk of consumer credit) relative to GDP. As of Q3, it totaled 17.2%...
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November 14th, 2008 at 1:05 pm
If conventional wisdom says that buying puts on a stock you are long serves as “insurance’, can I sell a boat load of puts, declare myself an insurance company, and apply for TARP?
Unless those puts pay off of course, then it’s all mine, after all this is a free market and I took on the risk so I keep all the profit. Mine! Mine! Mine!
November 14th, 2008 at 1:28 pm
To refer to my freshman Senator Sherrod Brown’s ramblings as “analysis” is beyond generous.
He is as clueless or as disingenuous, take your pick, as the next tool in the Congress, e.g., as I recall, Chrysler’s debt was only gov’t guaranteed so taxpayers never got back any money as none was ever lent.
November 14th, 2008 at 2:15 pm
How about some bailouts for the people who lost money in the “dot com” crash?
November 14th, 2008 at 3:52 pm
The mayors of Philadelphia, Phoenix and Atlanta all want bailouts now.
http://blogs.wsj.com/marketbeat/2008/11/14/tarp-city/
November 14th, 2008 at 3:54 pm
We should just come up with a list of entities that WON’T get bailed out.
That list is getting shorter every day.
November 16th, 2008 at 8:42 am
The news this morning is so good, you couldn’t make it up.
Europe is threatening sanctions if we bail out our car companies, and GM wants Europe to bail out the Opel..
http://money.uk.msn.com/investing/articles/morecommentary/article.aspx?cp-documentid=10960070
Europe car sales plunge as GM’s Opel seeks bailout
Interest rate on CD’s is beginning to climb (Imagine that..)
States, cities, companies…all are lining up for a meal at the drive in window….
http://prudentbear.com/index.php?Itemid=57&option=com_content&view=frontpage
Leftback….what do you think about Initial Claims Thursday….any chance of a Whopper?