President Obama, as part of his commitment to help strengthen the US Economy is revamping the Troubled Assets Relief Program (TARP) to improve the bank bailout efforts, and provide much needed relief to consumers negatively affected by the credit crunch.
Overhauling TARP is a necessary move needed to strengthen the financial sector. Banking institutions are holding onto their liquid assets to hedge any further loses. TARP will help them breath a bit more easily and get back in the business of loaning money to consumers and businesses alike.
As part of the Emergency Economic Stabilization Act of 2008, TARP was introduced as a way for the government to buy assets and equity from financial institutions to help stabilize the shaken economy due to the subprime mortgage crisis. President Obama has vowed to try a different, yet currently undetermined, approach to adjust TARP. President Obama and his team are committed to lifting the financial bailout “veil of secrecy” and make financial institutions get back on track.
During this financial crisis, people have been watching various government changes and aid programs take affect and have been left pondering, “how is this going to help me.” President Obama and his team are trying to tackle the core issue of “lending” and by doing that, consumers will eventually benefit positively from a “trickle down affect.”
Until the business of lending gets back on track, consumers are advised to use this time to clean up their credit history so when the money starts flowing they will be able to get the best rates possible. What are some things you are doing to help prepare for your financial future now?