Fed Unveils New Lending Program for Consumers

Called the Term Asset-Backed Securities Loan Facility, the program will invest $200 billion in buying securities backed by different types of debt — credit card, student loans, small business loans and auto loans.

The government hopes this measure will go a long way toward unclogging the credit markets and getting the engine of the economy firing again. What it means to you is that it may soon become easier to get a car loan, as there will be investors willing to take on the securities your debt will become part of.

Some economists fear investors will be scared away by loans not backed by the government, but with a severe shortage of other options, most people think the program can’t begin soon enough. The Fed estimates it will generate roughly $1 trillion of lending for small businesses and households.

Fed Launches Loan Program for Autos, More (Detroit Free Press)