Paulson Expected To Announce New Strategy
Written by A Forex View From Afar on Tuesday, November 25, 2008Sources say the Treasury together with the Fed will announce today a new plan in order to support the consumer credit market with the remaining $350 billion left in the bailout fund.
The plan to boost liquidity in the consumer credit market is not new, since it was announced two weeks ago by the Treasury Secretary, Mr. Paulson. After the announcement, equity markets plunged on concerns that the rest of the bailout money will not reach the banking system. Some suggest Mr. Paulson is adopting this plan because of the pressures coming from the two political parties to help the real economy rather than Wall Street bankers.
The Treasury expects credit card rates to drop lower, as a consequence of the new lending program, helping consumption to pick up. At the same time automobile purchases and college education lending programs will also be targeted. The press conference is expected today, at 10 a.m. EST.
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