Treasury Secretary Paulson: What This Economy Needs Is More Loans

• November 25, 2008

Treasury Secretary Hank Paulson is apparently developing government programs to increase the availability of credit to people seeking loans. But, aren’t government programs encouraging more credit a big reason why we’re in the mess we’re in now?

(Reuters) – Treasury Secretary Henry Paulson plans to announce on Tuesday the formation of a program to increase the availability of auto loans, student loans and credit cards, the Wall Street Journal reported, citing people familiar with the matter.
The lending facility, which will be operated by the Federal Reserve, is expected to provide loans to investors who want to buy securities backed by credit cards, auto loans and student loans, the people told the paper.

So now the Treasury is in the credit card and auto loan business.
Yeah. That’s just what we need.
Paulson is announcing this while President Bush is talking “free trade.” The rhetoric isn’t matching policy. Which, of course, is the biggest reason why Republicans in general have fallen from power.

Tags: Domestic Issues, Politics

http://Array 2Hotel9

As soon as they throw Democrats, like you, out of their Party.
2Hotel9

And still refusing to condemn your Party’s criminal activity, I see.
ellinas

Bike Bubba. While I agree with you, methinks a dedicated tax cutter like Reagan, would have and should have vetoed the bill.
http://www.myspace.com/thekingscourt4u Gman

I remember people being able to deduct it for the first one or two tax forms I ever filled out, and I was doing that from about 16 on, so that would put us at about, 1978. I believe that would be the Carter admin??
ellinas

So, ecunt, you are actually telling the world the R. Reagan was President of the US in 1978? You are standing by that?

2Hotel9 on November 25, 2008 at 07:28 pm

No, guttermouth. I am telling you when the ability to, deduct/take a tax credit, car loan interest, credit card interest, ended.
Look it up, and get back to me.
2Hotel9

Really, honey? R. Reagan was President in 1978? Really, ecunt?
ellinas

2Hotel9. Ummm! this is the wrong thread for your above post.
Are you confused? Lay off the booze.
2Hotel9

So, you stand by your contention that R. Reagan was President in 1978. OK. Whatever you say, ecunt.
ellinas

Robert108. While I disagree with you, methinks a dedicated tax cutter like Reagan, would have and should have vetoed the bill. This supposed deal with the
Democratic congress is done by individuals like you, IMO, for two reasons:
a)To present Reagan as a tax cutter.
He was not. He socked it to the middle class and poor, by taking away the few tax shelters they could find relief from the crushing debt. His tax cuts and tax shelters for the well to do remained in place and were greatly expanded.

b)To distract from the fact that he presided over massive government spending,that until G. W. Bush surpassed him, was the largest single increase in our national debt.

Of course, as usual you obscured the truth, and continue to aid and abet in the dissemination of false facts.
ellinas

Hellooooo!!!!!!! 2H9!! Where are you?
robert108

Since you are about an hour’s drive from Stockton…

Wrong again. You make declarative statements like you know something, but you don’t. That’s the mark of the liar.
http://www.myspace.com/thekingscourt4u Gman

Our economy has too long relied on frivolous spending for it’s growth base.

Small business credit to buy new capital equipment is necessary, and a good thing for the businesses.

Credit to pay payroll is ridiculous, but sometimes necessary, especially in a down economy.

Encouraging people to put more Propiel Pocket Fisherman’s on their credit cards to prop up the economy is asinine.

BUT,

If they really want people to spend more on credit, why not allow deducting credit interest off your taxes.

Why not get rid of the Capital gains tax. Incentive is the way to promote something, not mandates.
http://sayanythingblog.com/ likwidshoe

Conservative theory at its best. Ensure the welfare of those responsible for approving and making bad loans while ensuring the expense is covered by applicants and taxpayers.

That’s just ass-backwards ignorance.
http://www.myspace.com/thekingscourt4u Gman

Let the banks fail, and the FDIC do it’s job, and we would likely be paying less in the long run???

Stupidity + insanity + corruption = Government Bailouts.
2Hotel9

When what you are doing keeps making things worse QUIT doing it.

They continue to make things worse, and it is no accident, these asses are doing it on purpose. They are not being hurt by losses, they are inside the system and get all the money and perks they want.
brenarlo

This shows how stupid these guys are. People need to be paying down debt and saving. Ya know… the old fashioned way of capital formation. Of course does what we now have even pass the smell test to be a capital market?

The last thing this society needs is more credit cards and spending.
chokum

Conservative theory at its best. Ensure the welfare of those responsible for approving and making bad loans while ensuring the expense is covered by applicants and taxpayers.
http://northerngleaner.blogspot.com/ Gene

In February on this blog as stimulus checks were being sent out I said that the big problem I was seeing was a tightening of commercial credit. Credit to build things, to make improvments, to buy inventories, to acquire properties, to do interim financing of projects and to carry receivables.

This tightening meant that we were not going to be able as small business people to expand the economy. This wasn’t money to party with, got to the Bahamas. This was the grease of an economy.

It hasn’t got better. Commercial credit to small business is still difficult.

We do need more loans, just not the loans to do what Paulson is talking about.
ellinas

From the US treasury web page:

Why can’t I deduct “personal” interest expenses when I purchase a car, or for the interest on my credit cards?

The deduction for personal interest, including interest on charge card purchase of consumer items, was phased out by the Tax Reform Act of 1986. Congress believed that the deduction for personal interest encouraged people to consume and that such consumption was at the cost of savings. At the time, the American savings rate was declining and, unfortunately, the private savings rates continues to remain low. To eliminate the significant disincentive to savings, Congress repealed the itemized deduction for personal interest other than mortgage interest. Legislation by the Congress would be required to reinstate the deduction for personal interest expenses.

And here is the link:
http://www.treas.gov/education/faq/taxes/deductions.shtml#q1
ellinas

Anybody seen 2H9? He needs to answer the above.
robert108

Keep lying, it’s all you’ve got. Of course, you could try truth and honesty. Something new for you.
http://www.bikebubba.blogspot.com/ Bike Bubba

OK, so who controlled Congress in 1986…..and what other interesting fallout did that tax bill have? I’ll give you a hint; it changed the depreciation schedules on real estate for the purposes of capital gains.
ellinas

robert108. You are legendary smacker of the wrong kind.

Now back to the part you ignored: Are you ready for Thanksgiving? Since you are about an hour’s drive from Stockton, I thought maybe we can celebrate together.
http://www.bikebubba.blogspot.com/ Bike Bubba

Well said, Rob. Hair of the dog that bit you isn’t the real way to get over a hangover. Unfortunately, activists on both sides of the aisle are scrambling for that drink right now.

While healthy credit markets are key to economic stability, “juicing” the markets by easy credit isn’t the way to do it. A good start would be to let some big banks (let’s call one of them “Citibank”) fail, and let those which remain start to issue credit based on sound standards. Little things like “welfare payments and unemployement benefits don’t count as income for the purposes of getting a loan” and “if people don’t walk there at night, you don’t have to issue loans in that neighborhood.”
ellinas

if they really want people to spend more on credit, why not allow deducting credit interest off your taxes.

Gman. This used to be was allowed, until R. Reagan’s tax cuts took it of the IRS books.
2Hotel9

So, ecunt, you are actually telling the world the R. Reagan was President of the US in 1978? You are standing by that?
ellinas

Really, honey? R. Reagan was President in 1978? Really, ecunt?

2Hotel9 on November 25, 2008 at 04:38 pm

Yes realy 2H9. Deductions for interest on credit cars and other consumer loans such as car loans, along with income averaging (remember that?) were taken away during Reagans tenure as president.
ellinas

Hellooooo!!!!!!! 2H9!! Where are you?
ellinas

Keep lying, it’s all you’ve got. Of course, you could try truth and honesty. Something new for you.

robert108 on November 26, 2008 at 05:44 pm

I do all the time. But anything that does not originate at your brain or keyboard, you reject.
ellinas

robert108. Above you post, dated Nov. 26 2008, and time stamped 03:33pm,is my post,dated 11/26/08 time stamped 01:56 pm, and it is the truth.
Of course, as usual you continue to obscure the truth, and continue to aid and abet in the dissemination of false facts.
Tsk! Tsk!
robert108

I said about an hour.

Not even close. You lie again to cover for your first lie. It’s like saying that Obama will take office in “about a day”. Pathetic.
ellinas

Bike Bubba, 2H9, and Gman. Once again: The deduction for personal interest, including interest on charge card purchase of consumer items, was phased out by the Tax Reform Act of 1986. Income averaging was phased out about the same time. R. Reagan was president. Did a cat eat his veto? Follow the link:http://www.treas.gov/education/faq/taxes/deductions.shtml#q1
2Hotel9

Naw, you just get it in any thread for awhile.
ellinas

2H9! Are you OK? You haven’t fallen of your chair while in a drunken stupor, have you?
I am concerned about you.
ellinas

So, you stand by your contention that R. Reagan was President in 1978. OK. Whatever you say, ecunt.

2Hotel9 on November 26, 2008 at 03:45 am

Why are you asking this question over and over? Please show where I have claimed that R. Reagan was president in 1978, or even infer such an absurdity?
2Hotel9

Just handing you the crap you pass out in threads all the time. Whats wrong? You don’t like it? Tough.

Have you registered any complaint with the DNC about their utter lack of response to criminal behavior by its members in its name? Hello! McDumbass, anyone in there? Its your Party, you vote for it, you defend it. realitydenyingboob routinely posts article that show Republicans holding their fellow Party members responsible, and you still refuse to hold your Party to the same legal standard as every other American is held to.

Besides, heaping derision on you is good fun.
ellinas

robert108. Above you post, dated Nov. 26 2008, and time stamped 02:01pm,is my post and it is the truth.
Of course, as usual you continue to obscure the truth, and continue to aid and abet in the dissemination of false facts.
Tsk! Tsk!
ellinas

I reject your lies.

robert108 on November 26, 2008 at 06:34 pm

And that is the problem. If you didn’t think it or write it you label it a lie.

By the way! Are you ready for Thanksgiving? Since you are about an hour’s drive from Stockton, I thought maybe we can celebrate together.
robert108

And that is the problem.

It’s not a problem for me; you lie, I smack you with the truth.
If you tell the truth, you won’t get smacked by me and everyone else here. Get help.
robert108

While I disagree with you, methinks a dedicated tax cutter like Reagan, would have and should have vetoed the bill.

You can disagree all you want, but history says otherwise. If the lying Dems had kept their promise to cut spending two dollars for every one dollar increase in taxes, it would have been much less harmful. You can lie all you want; you just can’t change the truth.
President Reagan reduced marginal tax rates; that is also a matter of history. He also rescued us from the Carter economic debacle, which involved double digit inflation, interest rates and unemployment. This is also a matter of history, so your lies, once again, don’t matter. None of this is a matter of opinion.
He took away no tax shelters, which are used by wealthy doctors and others, btw, so you again demonstrate your ignorance. The Dem Congress did that. Again you lie, lie, and lie.
http://www.bikebubba.blogspot.com/ Bike Bubba

Ellinas, perhaps Reagan knew it was the best he could get out of Tip O’Neill? Sorry, blame lies with the place where tax bills originate, the House of Representatives.
ellinas

OK! I don’t realy care how far or how close you live.
How about my Thanksgiving offer.
robert108

…the Tax Reform Act of 1986.

The worst effect of TEFRA was that it removed rental property as a tax shelter, leading to the S&L collapse a bit later. The lie about blaming it on President Reagan is that the Dem Congress promised to cut spending by $2 for every $1 of tax increase, to avoid a veto. Of course, they lied. Taxes went up, and so did Dem spending.
robert108

e liar: It’s a matter of history; you’re wrong, as usual. You are a well-established ignoramus when it comes to matters of economics, and your blind partisanship makes it impossible for you to admit the truth about President Reagan.
ellinas

I said about an hour. Maybe more maybe less. Depends on the traffic and or speed.
HG

Reagan, would have and should have vetoed the bill.

E, glad to see you’ve joined with those opposed to tax increases. What took you so long?
robert108

But anything that does not originate at your brain or
keyboard, you reject.

I reject your lies.
http://sayanythingblog.com robport

I don’t think there’s anything wrong with credit cards or loans, but as with all things they should be governed by the market. When the government encourages this kind of lending/borrowing we run into problems with people borrowing more than they need, and lenders lending more than they should.
http://sayanythingblog.com/readers/author/sparkiearbuckle sayanything-81

Treasury Secretary Hank Paulson is apparently developing government programs to increase the availability of credit to people seeking loans.

Republicans! When will they stop the insanity?

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Treasury Secretary Paulson: What This Economy Needs Is More Loans

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