Term Asset-Based Securities Loan (???)

[Razorguns]

Fed launches program to aid consumer credit - Stocks & economy- msnbc.com

The Term Asset-Backed Securities Loan Facility (TALF) is the name of a program created by the US Federal Reserve (the Fed), announced on November 25, 2008[1]. The facility will support the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration (SBA). Under the TALF, the Federal Reserve Bank of New York (FRBNY) will lend up to $200 billion on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans.


WTF does that mean? People who give these kinds of loans have a backup of the government in case the lender fucks up?

In that case - get the loans and then not pay! haha! Sucker!

I'm not big on that businessese talk. Obama really can't be that stupid can he?

r

 

[SpyWizard]

change.. don't ya love it

 

[Razorguns]

change.. don't ya love it

So basically - if you get a loan in 2009, and don't pay - the govt pays it. ?

Then why the fuck would you make even a single payment???

Hell i'm busting my ass to the SBA tomorrow if that's the case. Borrow as much as I can - no recourse if I don't pay. Woo Hoo!

r

 

[Razorguns]

Okay what it means is:

The secondary market - where your credit card loans, car loans, etc. credit is traded as securities (basically once you buy $5g's of merchandise, your "$5g loan" gets immediately sold to someone else who profits from the interest) and now the govt will just buy it. So lenders, with a BIG ASS wallet to buy these securities, will go on a windfall, and just handout credit to ever tom, dick and harry. Then upsell the loans to the TANF and profit the transaction fees and profits from selling.

Then if you never even make a payment - it's the govt that gets fucked. How awesome!

In a time when people shoudl be saving, the govt is advising people to spend spend spend instead, we'll even give you MORE CREDIT! Hey Obama, why don't you also make it easy for people to qualify for mortgages too! Low Income people, etc. Then we can really go back to square one!

r

 

[Creepusmaximus]

Gov't will get f'ed on that.

Student loans are already a problem that won't get better.
Credit cards are heading for over a 10% default rate.
Small businesses always do well in recessions??????


Flush, someone will make money. Won't be the taxpayer.

Commerical real esate is next implode right after credit cards and so down the line we go. I feel sorry for the retirees, not the baby boom retirees but the older ones. The BB's got us in this mess.

 

[Razorguns]

I have a feeling Geneartion X, Y and today's Generation will remember the retarded BB'rs when they hit 80 and 90. If they totally fuck up the country - expect anyone younger than 35 right now to be beating them in the streets when older.

r