"House members from both parties are asking the Federal Reserve to intervene and steady the shaken student loan market.
The
request Monday came a day after the central bank answered a distress
call from the credit market, with a pledge to supply a $30 billion line
of credit to back up the assets of Bear Stearns & Co., the
investment firm acquired at a fire-sale price by rival JPMorgan Chase
& Co.
Rep. Paul Kanjorski, D-Pa., chairman of the House
Financial Services subcommittee on capital markets, and 31 other
lawmakers asked Fed Chairman Ben Bernanke for the Fed to inject cash
into the student loan market by using a special lending operation.
"In
these difficult economic times, we believe that the Federal Reserve
System should work ... to restore a smooth functioning of this market
sector and to avoid negative economic outcomes," they told Bernanke in
the letter. If students "are unable to secure loans in the fall, we
would not only severely impair their long-term earnings capacity, but
we would also impair our nation's economic prospects," it said."
Let's just print money like it is worth nothing and it soon will be.
It's so much better that we just simply give the money to Wall Street?
Bailouts for everyone!
It'll be like a Democrat triumph. The more money you hand out to people, the wealthier they'll be.
Of course, this triumphant philosophy has been well advocated in other forms by virtue of the Ownership Society. This stems from the Republicans having a weakness similar to the Democrats, in that they borrow-and-spend instead of tax-and-spend. Guess which one the bankers prefer?
No wonder Greenspan visited the Oval Office so many times in Bush's administration that he may as well have just set up a cot for him (or the Lincoln Bedroom, as if there's any difference).