Early next year, the Federal Reserve will also implement the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses. http://www.federalreserve.gov/newsevents/press/monetary/20081216b.htm So the fed is going retail? no way!
The answer to this huge mess is to pay off everyones debt then start over with tighter lending terms, yep that should do it.
What about the $50 Trillion in worthless CDSs? Let's say the average American household has $10,000 in credit card debt... and that there 100 million households. That's ONE $Trillion. And there are supposedly $500Billion is defaulted sub-prime mortgages. That's $1.5 Trillion. Our "leaders" have already committed about $10 Trillion to various financial aids... So, what's the deal? I think they're trying to reimburse all the dumbasses for their worthless CDSs at taxpayer expense.. and doing so in such a way we stupid sheeple don't understand how we're being hosed.
Now wait a minute. This is a ploy to get the banks to step up and lend. The fed is saying they will do it if the banks won't.
it's absurd that people are still paying 20% interest on retail and credit cards when the banks are paying only 3% on money or less than 10% 100% profit on credit card business asssuming no personal bankruptcies.
"Free money loans to every dickweed who asks" got us into this mess. How is the Fed "lending to everybody" going to fix anything??
companies are having problems getting a line of credit to pay for payroll and suppliers even at 7% interest.