Another Economic Recovery Plan?
March 12, 2009 – 9:47 pmAnother Economic Recovery Plan?
The federal government is planning on spending another $19.904 trillion of your money and my money. What is the justification of such spending? Why, to save the economy of course.
According to the Economic Times, here is a breakdown of the plan:
-The Obama Fiscal Stimulus Program-$787 billion will be spent on infrastructure, unemployment, state aid, etc
-Housing Support-The Federal Housing Administration will be will $300 billion to refinance troubled mortgages. $25 billion will be spent in modification costs of the mortgages. $6 billion will be spent on grants to local communities that will help each of them stabilize their communities. $1.5 billion will be used as relocation aid for people who are renting because they have been forced out of their homes due to foreclosures
-Mortgage, Consumer and Credit Markets-approximately $1.6 trillion will go to supporting these markets
-Insurance Corporation Guarantees-approximately $1.9 trillion will go to the FDIC
-Fannie Mae/Freddie Mac Support-almost $400 billion will be given to Fannie Mae and Freddie Mac
-Commercial Paper Funding Facility-almost $1.8 trillion will be spent to buy “U.S. dollar commercial paper”
-Currency Swap Lines-an unlimited amount will be set aside to facilitate currency swaps between the Federal Reserve and the European Central Bank, as well as with the central banks of Japan, Switzerland and Great Britain
-Money Market Investory Funding Facility (MMIFF)-the Fed plans on spending nearly $600 billion to be placed in a MMIFF
-Discount Window Lending Commitments-an unlimited amount of money has been committed to lend money to banks through discount window lenders
-Bear Stearns Sale Support-$29 billion will be given to JPMorgan Chase to finalize the buyout of Bear Stearns and Co.
-Auction Facility Loans-Federal Term Auction Facility Loans will be offered at bi-monthly auctions
-Term Securities Lending Facility-loans of about $200 billion will be given to primary securities dealers
-Treasury Troubled Asset Program-$700 billion will go to the United States Treasury to back up the U.S. financial system
-AIG-an original $70 billion will be given to AIG through capital investments. Another government credit line of $60 billion will be given to AIG, as well as $52 billion in loan assets
-Treasury-Led Public-Private Investment Fund-a public/private investment fund will be established by the Treasury. The fund would purchase troubled assets from banks and would also establish “benchmark” prices
-Money Market Fund Guarantees-Almost $50 billion will be spent to boost confidence in money market mutual funds. The money will come from The Great Depression-era Exchange Stabilization Fund
As you can see, an extensive amount of taxpayer money will be spent on “saving the economy.” Most taxpayers don’t realize the true extent of this economic recovery plan. This is not just a $787 billion economic recovery plan that was signed into legislation. This is a major $10.9 trillion project that the government has undertaken. And, it most definitely, affects your finances and mine.