On Feb 10, 2009, at 1:10 PM, John Gulick wrote:
> "...a $1 trillion program to supply new credit to consumers and
> businesses."
>
> Could someone elaborate on this?
The Fed and Treasury have jointly been running a program to buy up such loans, to provide liquidity and a security blanket. They're jacking it up so that the Treasury is supplying $100 billion (from TARP cash), which the Fed will leverage up to $1 billion. You could think of the Treasury as contributing equity and the Fed, debt. It seems a little loopy to me, in an era of deleveraging.
> "The administration also will inject additional taxpayer funds into
> banks, imposing
> tighter restrictions that will include limits on dividend payments,
> acquisitions and
> executive pay."
>
> Is this the cosmetic, opt-out measure that we heard about late last
> week?
Yup.