U.S. plans program to aid credit issuers

Source: AP/MSNBC


Paulson plans to use a piece of $700 billion bailout fund to pay for program

BREAKING NEWS

updated 1 hour, 5 minutes ago

WASHINGTON - The U.S. government is working on a new loan facility to help companies that issue credit cards, make student loans and finance car purchases.

The Treasury Department and the Federal Reserve will unveil the program Tuesday, according to people familiar with the plan. They spoke on condition of anonymity because a formal announcement has yet to be made.

The Federal Reserve also announced it was buying up to $600 billion in mortgage-backed assets to deal with financial crisis.

Treasury Secretary Henry Paulson has said he plans to use a "relatively modest share" of the $700 billion financial bailout money to pay for the new program.

The Fed said it will purchase up to $100 billion in direct obligations from mortgage giants Fannie Mae and Freddie Mac and the Federal Home Loan Banks. It also will purchase another $500 billion in mortgage-backed securities, pools of mortgages that are bundled together and sold to investors.




Read more: http://www.msnbc.msn.com/id/27905756/

Great job making sure consumers continue to not spend on anything other than essentials and credit card payments.

Maybe a million of us, or so... on hold waiting for a decision on workouts with nothing happening since summer, and an axe that could fall anytime without further notice. He keeps saying modifications are happening, but they're very spotty, and mostly nonexistent. They're all dependent on who holds the paper, which NO homeowners know - we're totally in the dark about what will happen or what applies to us. We need a foreclosure moratorium NOW, until they figure this out (and a damn usury law to cap interest rates, across the board, on everything!).

Nice triaging - rush to the aid of any who aren't wounded.

The Federal Reserve is to pump $800bn (£526.8bn) into the markets in another bid to deal with the financial crisis.

http://news.bbc.co.uk/1/hi/business/7748362.stm

Those trapped in high CC debt won't be applying for any other cars in the near future and if there are no jobs how how will the creditors get new customers willing to finance a new car or CC, or a new house. I know, get another $7 per hour fast food job to make ends meet and don't forget to go shopping with you new found windfall.