Shocking (Not!): Bailout Monitor Sees Lack of a Coherent Plan (credit, borrow)

[bbkaren]

"...Elizabeth Warren, the chairwoman of the oversight panel, said in an interview Monday that the government instead seemed to be lurching from one tactic to the next without clarifying how each step fits into an overall plan.

“You can’t just say, ‘Credit isn’t moving through the system,’ ” she said in her first public comments since being named to the panel. “You have to ask why.”

If the answer is that banks do not have money to lend, it would make sense to push capital into their hands, as the Treasury has been doing over the last two months, she continued. But if the answer is that their potential borrowers are getting less creditworthy with each passing day, “pouring money into banks isn’t going to fix that problem,” she said..."

http://www.nytimes.com/2008/12/02/bu...tarp.html?_r=1


I'm happy to see that at least someone has their head on straight...now, will her opinions make any difference in what they do? Lord knows our opinions haven't.

[bale002]

Originally Posted by bbkaren

potential borrowers are getting less creditworthy with each passing day

I'm happy to see that at least someone has their head on straight...now, will her opinions make any difference in what they do? Lord knows our opinions haven't.

If she had real balls, she would follow up by asking, why are potential borrowers becoming increasingly less creditworthy.

Then she would answer that question by pounding out the words to the following formula in bronze letters, heating the bronze to red hot level, and branding the foreheads of everyone in Washington and every American with it:

production - consumption = saving + investment.

When that formula is in equilbrium, then there will be creditworthy borrowers.

[HappyTexan]

I think that the money is going to the banks and then flowing out of the country as foreign investors cash in. Just my $.02 but you'll never see that in print.

[bbkaren]

Hmm, I wonder what "sort" of foreign investors? And why are some banks considering sharia finance...?