[Infowarrior] - Treasury Widens Scope of Bad-Debt Plan

[Richard Forno]

...looks like Treasury is trying to get the jump on the next tidal  
wave of credit problems that we all know are coming in the form of  
consumer debt, credit cards, school and auto loans, etc.  That said, I  
still think this whole plan is a scary short-term fix of the symptoms,  
not a long-term cure for the underlying problem.   --rf



U.S. Treasury Widens Scope of Bad-Debt Plan Beyond Mortgages
By Dawn Kopecki
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYXtwpG9mw9g&refer=home

Sept. 21 (Bloomberg) -- The Bush administration widened the scope of  
its $700 billion plan to avert a financial meltdown by including  
assets other than mortgage-related securities.

The U.S. Treasury submitted revised guidance to Congress on its plan,  
referring to its proposal to purchase so-called troubled assets, a  
change from its original plan for investments tied to home loans,  
according to a document obtained by Bloomberg News and confirmed by a  
congressional aide.

The change suggests the inclusion of instruments such as car and  
student loans, credit-card debt and any other troubled asset.

Firms that are headquartered outside the U.S. will now be eligible, in  
another change from the guidance sent to Congress yesterday, according  
to the document. The size of the plan remains unchanged.

To contact the reporter on this story: Dawn Kopecki in Washington at dkopecki at bloomberg.net