The Bailout Expansion
Secretary Paulson announced this morning that he is shifting the focus of the bailout. The bailout was originally designed to buy back trouble mortgage loans, but now Paulson wants to look to credit card, student loan, and car loan companies.
Paulson explained that there is a little less then half of the $700 billion which has not been assigned, and he said the remainder, should be used to reinvigorate the market for credit cards, student and auto loans — which combined account for some 40 percent of consumer credit.
Although Paulson is shifting the focus away from buying up mortgages he has said that he has pledges to intensify government efforts to help at-risk homeowners, he explained that his aides are examining strategies to mitigate foreclosures.
Tags: federal bailout, foreclosuse, homeowner bailout, mortgages