If this counts as “support” to consumers, as the headline describes it…:

Consumers, the cornerstone of U.S. economic activity, are still in disarray, data and central bank measures signaled on Monday, as households struggle amid the worst recession since the Great Depression.

The U.S. Federal Reserve announced the extension of programs to boost consumer lending, while credit-card issuers showed that people are increasingly having trouble paying their bills. […] In a joint announcement with the U.S. Treasury Department, the Fed said it would extend its Term Asset-Backed Securities Loan Facility (TALF) to June 30, 2010 for newly issued commercial mortgage-backed securities.

The Fed and the Treasury also extended TALF through March 31 for newly issued asset-backed securities and already-issued, or “legacy,” commercial mortgage-backed securities. Both parts of the program were due to expire December 31.

…then I’d hate to see what tossing them an anvil would look like.

The problem is that debt ever became an accepted vehicle for consumption in the first place.  Trying frantically to make as much additional debt available as possible isn’t just ignoring that, but actively encouraging much worse conditions later.


About b-psycho

Left-libertarian blogger & occasional musician.
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