Federal TALF program hopes to unlock the credit market on clarkhoward.com

The federal government is quietly launching a $1 trillion program that it hopes will get the credit market moving, according to The Wall Street Journal.

The Term Asset-Backed Securities Loan Facility (TALF) will see the government acting as a "shadow bank" that operates outside of the typical confines of the banking world.

Beginning March 17, money will be available for large organizations that are all tapped out. It's like they'll be able to go to the equivalent of a teller window to get money that's backed by we the taxpayers.

This money will go to banks so they can extend consumer credit and make loans. It will also be available for small business borrowing. In addition, some of it will be targeted to big industrials that need to fund ongoing operations; some will go for farm equipment; and some will even go to car rental companies!

What this move does is buy the federal government more time while they try to figure out what to do about the zombie banks.

So we don't own TALF, but we fund it. And we don't benefit from it, except indirectly, if it gets the market moving again. And you know what? Clark thinks it's a step in the right direction.

What others are saying

dont borrow steal instead
OK, if the government takes money as taxes and lends it back to me, do I benefit? Or is the government that benefits, when it says the economy is doing better when its just a reshuffle of debt?
If the government borrows from the future to make things look better today, what will the future be like?
What if the debt is not repaid- is it theft by deception?
Say hello to the new dollar, worth 25cents.
By banker spanker @ 03/10/09 11:51:33 PMreport abuse
Credit is a drug
Sure Greg, and the answer to heroin addiction is one more fix.
By Terry @ 03/09/09 02:34:06 PMreport abuse
TALF loan programs
Sure, you can't borrow your way out of debt...but if the mortgage is due and monthly expense bills are waiting to be paid, sometimes credit is the only way to continue, as you hope to balance the books at a later time.

Even if you had a cushion of cash to tide you over for a while, there may well be a time period where borrowing is the ONLY answer.
By Greg @ 03/09/09 10:59:09 AMreport abuse
TALF, SMALF - it's just more B.S.
Exactly Rob, you can't push a rope. Everyone except Congress knows what the solution is -- the bad debts need to be recognized and written off, and the zombie banks need to be dissolved. An ugly, painful end to an ugly and painful predicament.

Will they do what is needed? Of course not, they are politicians!
By Jeff @ 03/09/09 12:23:14 AMreport abuse
talf
with unemployment high just who are these borrower's anyway?
By rob @ 03/07/09 11:15:07 PMreport abuse
TALF & "bailouts"
I spent a career in bank lending and continue to preach, much to many people's displeasure, that, "It's tough to borrow your way out of debt.
By John C @ 03/07/09 08:29:10 PMreport abuse

dont borrow steal instead

OK, if the government takes money as taxes and lends it back to me, do I benefit? Or is the government that benefits, when it says the economy is doing better when its just a reshuffle of debt?
If the government borrows from the future to make things look better today, what will the future be like?
What if the debt is not repaid- is it theft by deception?
Say hello to the new dollar, worth 25cents.

By banker spanker @ 03/10/09 11:51:33 PMreport abuse

Credit is a drug

Sure Greg, and the answer to heroin addiction is one more fix.

By Terry @ 03/09/09 02:34:06 PMreport abuse

TALF loan programs

Sure, you can't borrow your way out of debt...but if the mortgage is due and monthly expense bills are waiting to be paid, sometimes credit is the only way to continue, as you hope to balance the books at a later time.

Even if you had a cushion of cash to tide you over for a while, there may well be a time period where borrowing is the ONLY answer.

By Greg @ 03/09/09 10:59:09 AMreport abuse

TALF, SMALF - it's just more B.S.

Exactly Rob, you can't push a rope. Everyone except Congress knows what the solution is -- the bad debts need to be recognized and written off, and the zombie banks need to be dissolved. An ugly, painful end to an ugly and painful predicament.

Will they do what is needed? Of course not, they are politicians!

By Jeff @ 03/09/09 12:23:14 AMreport abuse

talf

with unemployment high just who are these borrower's anyway?

By rob @ 03/07/09 11:15:07 PMreport abuse

TALF & "bailouts"

I spent a career in bank lending and continue to preach, much to many people's displeasure, that, "It's tough to borrow your way out of debt.

By John C @ 03/07/09 08:29:10 PMreport abuse

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Mar 06, 2009 -- Federal TALF program hopes to unlock the credit market

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