Paulson Has a Christmas Gift for Credit Addicts
Please Mr. Paulson – wake me out of this Bad Consumer Credit dream.
I almost fell out my chair this morning when I saw this headline from the Wall Street Journal: “New Facility Targets Consumer Lending.” It seems that the U.S. Treasury is starting its own clinic for consumer credit addicts. But instead of handing out Dave Ramsey books or some kind of credit methadone, this clinic will be distributing actual credit. Yep. $25-$100 billion of our tax dollars will be used to fund car loans, student loans, and credit card lending.
Remember the old saying “feed a fever, starve a cold” to treat certain childhood illnesses? For Secretary Paulson and credit addiction, the treatment mantra is “feed those junkies whatever they want.” Our economic leaders are concerned about “distress” in the consumer finance market. That’s interesting. Mr. ToughMoneyLove has been concerned about the consumer finance market for at least ten years, during which many of my fellow Americans used credit to pay for everyday living. Now they are hung over or in recovery, a condition that our government cannot seem to tolerate.
Gosh – I hope the payday loan companies get a piece of the Paulson “credit facility” action. We certainly don’t want any of those nice folks getting “clogged up” with bad loans.
Mr. Paulson hasn’t told us where the jobs are coming from so that people can re-pay all of this new consumer debt. But then re-payment isn’t all that important because the money is coming from taxpayers.
Merry Christmas credit junkies, straight from Secretary Paulson. And for those of you who have been and remain debt free? You’ll be receiving a nice tax increase in your stocking. Bah humbug.