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Current Events => Politics => Topic started by: Wretched Excess on October 14, 2008, 11:18:38 AM

Title: Treasury plan could help automakers: Rep. Frank (by buying up bad car loans)
Post by: Wretched Excess on October 14, 2008, 11:18:38 AM

you just knew it was going to go from houses to cars. :thatsright: 

Quote
Treasury plan could help automakers: Rep. Frank

WASHINGTON (Reuters) - The U.S. government's $700 billion market rescue plan could assist automakers such as General Motors Corp (GM.N) by buying up distressed auto loans, a top lawmaker said on Tuesday.

"Under the buying up of assets, they could buy up automobile loans," said Barney Frank, a Massachusetts Democrat who chairs the House Financial Services Committee.

Frank also said U.S. banks receiving capital injections under a U.S. Treasury plan to infuse $250 billion into the troubled sector are expected to use the funds to support lending activities.

On Tuesday morning the Treasury Department unveiled more details of how it plans to implement the $700 billion bailout plan passed earlier this month, saying it would directly inject capital into U.S. financial institutions. It said nine banks have already signed on to the program; it did not name the nine.

Frank said the nine are "relatively healthy" and do not appear to be at risk of sustaining large losses from credit default swaps, insurance-like products that protect a bigger investment.

More (http://news.yahoo.com/s/nm/20081014/bs_nm/us_financial_usa_frank;_ylt=AhlpYKDUrvi4Df3cETOa9o.yBhIF)
Title: Re: Treasury plan could help automakers: Rep. Frank (by buying up bad car loans)
Post by: docstew on October 14, 2008, 03:54:42 PM
why now?  why?  i only have 5 payments left on mine... could have used that 2 years ago
Title: Re: Treasury plan could help automakers: Rep. Frank (by buying up bad car loans)
Post by: Chris on October 14, 2008, 06:07:06 PM
Free cars!  Free cars!  :hyper:


I think Barney is just jealous of Oprah.  :whatever:
Title: Re: Treasury plan could help automakers: Rep. Frank (by buying up bad car loans)
Post by: Airwolf on October 14, 2008, 09:33:39 PM
This worked so well the last time with houses.
Title: Re: Treasury plan could help automakers: Rep. Frank (by buying up bad car loans)
Post by: Lacarnut on October 14, 2008, 09:49:24 PM
This worked so well the last time with houses.

It is unlikely but possible that the Treasury could break even or make money on buying up bad mortgages. Buying up bad car loans is the craziest thing I have ever heard of. The only cars that appreciate in value are the exotics and or limited production vehicles like a Ferrari. Anything else sinks like a rock as soon as it is driven off the lot.