Where's the Demand for TALF?

The Term Asset-backed Securities Loan Facility (TALF) sounds like a great way to get credit flowing again in the consumer finance industry. Through the program, an investment fund can borrow cheaply to securitize AAA rated credit card loans, student loans, auto loans, or even small business loans. The problem is that demand has been minimal so far, without a single request for small business or student loans.

[U.S. Economist Michael] Feroli added that concerns remain about the future of the TALF program. For example, he wrote that potential issuers and investors have expressed worry "that policymakers will eventually slap restrictions, taxes, or fines on companies which benefit from TALF."

Understandable. Yet another byproduct of the Fed's ridiculous grandstanding is that not only do banks want nothing to do with TARP anymore, but investors are now very reluctant to utilize other programs such as TALF, designed to improve the credit markets again.

One final point about that idiotic 90% law that passed yesterday. It seems hard to believe, but even a secretary who gets a $5K bonus for her work will get that bonus effectively stolen by the government if her family income is $250K. Nice. Idiocy has just found a best friend in the Democrat-run Congress.