All right, I am probably the last person who should comment on an article from the
Wall Street Journal, since I have only the tiniest interest in finances. Today, I cannot resist.
At work I had to read and summarize a WSJ article that, based on the title, seemed uninteresting: "
Consumer-Loan Plan Is Off to Slow Start." But then, as I was reading further, I could not help but notice a glimmer of hope. Apparently the Term Asset-Backed Securities Loan Facility, brought about, of course, by the liars, cheats, and swindlers at the Federal Reserve and the Treasury Department, is not as popular as they were hoping. As I understand it, TALF supposedly lends easy money to "investors" who are then supposed to use it to buy consumer-backed securities.
(Because that worked
so well before.)
But investors aren't going for it. Well, not much. And it's sad that a program starting with $200
billion has so far lended "only" $5 billion. I say "sad" because
we are using the word "only" to refer to FIVE BILLION DOLLARS! That is $5,000,000,000.00. That many zeros should make you dizzy!The article gives several reasons why they aren't going for TALF, and that's what gives me hope. Public outcry over the AIG bonuses is one reason. Investors are afraid of facing the same thing if they accept taxpayers' money---as they should be, since it was money stolen directly, through taxation, and indirectly, through inflation. They
should be afraid of backlash, because the public
should be angry about this---not necessarily that the execs are getting huge bonuses, but that the money was given to AIG, and all the other welfare recipients, in the first place. This gives me hope that people are staring to
actually care and pay attention to what the government does to our money.
Banks, hedge funds, etc., are also afraid of getting into an agreement under TALF because they are afraid that the government is going to change the rules. Again. And again. Because they have seen it happen, they have seen the indecision amongst the politicians, they have heard announcements that we may need another stimulus bill, etc. Specifically, the article says, they "also worry they may be caught up by a provision in fiscal-stimulus legislation that restricts the use of foreign workers by firms that accept government money. Investors are concerned that terms may keep changing midstream." You mean ... you mean ... the government
might not be trustworthy?? REALLY?
So that is what I got out of the article. Obviously, the summary I did for work looks slightly different. I do realize that this article provides only a
little bit of hope that eyes are being opened. But still, it is hope. It's
something.