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Old 12-24-2008, 02:52 AM
 
1 posts, read 5,394 times
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Can some tell?
What is "Consumer Loan Buyout" from bank perspective and what is its procedure or process?
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Old 12-24-2008, 05:02 AM
 
Location: western East Roman Empire
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There is no such expression "consumer loan buyout".

However, you may be referring to the possibility that the US monetary authorities (Fed and Treasury) may guarantee or assume ownership of or provide capital to offset (in short, bail out) consumer loans or securities backed by consumer loans on the balance sheets of banks.

In other words, pathological idiots at US banks made loans for inefficient housing, cars, and consumption to their fellow pathological idiot citizens who cannot pay these loans back. Worse, these pathological idiots at the banks packaged these loans as securities, hawked them as AAA safe, and sold them to the rest of the world (sort of like somebody affected with AIDS purposefully screwing around to spread the disease).

First, the housing loans collapsed, second cars, now increasingly consumer credit.

For months now the Fed has been accepting these diseased securities as collateral to keep banks funded and most recently Treasury has injected new capital into the banks through the TARP program by which, as originally explained by the top pathological idiot banker, Treasury was supposed to buy diseased housing loans and securities directly from participating banks. Most recently, the top pathological idiots used the so-called TARP money to provide a bridge loan to the car companies.

Credit card debt and consumer credit backed securities may be next in line for a government bailout.

Maybe that is what you are referring to. But don't think that the individual debtor will benefit from any such programs, except maybe indirectly.

But maybe you are referring to something else, and I ranted only for pleasure.
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