(snip)"The lending facility, which will be operated by the Federal Reserve, is expected to provide loans to investors who want to buy securities backed by credit cards, auto loans and student loans, these people said. Treasury will contribute between $25 billion to $100 billion to the facility from its $700 billion Troubled Asset Relief Program.

The program is aimed at making it easier for consumers to borrow money. Government officials, including Mr. Paulson, have grown concerned about "distress" in the consumer finance market, as the availability of household loans has ground to halt amid a broader credit crunch."(snip)


Let me get this straight. If I'm a 'qualified' investor under this plan, I can borrow $1 million at 3% interest (or something below market) from the TARP, and then can use that $100k to purchase a bond backed by consumer credit cards or auto loans or student loans which will pay me 6-8-10%+ interest. And if I buy that bond from Citibank, the gov't will also guarantee 90% of the bond's value regardless of how many credit cards, car loans or student loans become delinquent !