Taypayer Handouts and Ripoffs

Negotiators Agree on $790 Billion Price for Stimulus Bill

February 11, 2009

AP - Negotiators for Congress and the White House have tentatively settled on a $790 billion price tag on President Barack Obama's economic stimulus bill and have restored some the Senate cut from school repair and state aid.

After talks continued nonstop Wednesday, officials announced a formal meeting of negotiators for mid-afternoon in the Capitol as they try to get a bill to Obama's desk for signing by week's end...

Bailout, Take 2: Investors Want U.S. Taxpayers to Share Risk

February 9, 2009

AP - Investors want the Obama administration to sweeten the deal before they agree to buy risky debt from U.S. banks as part of the government's retooled program to rescue the ailing financial industry.

The administration is expected to announce Tuesday that the government's latest bailout strategy will be enticing big investors to buy more than $1 trillion in troubled assets from the banks. The hope is that, free from the drag of subprime mortgage debt and other bad investments, banks will be more likely to start lending money again and the economy will rebound.

Exactly how the administration plans to persuade hedge funds, insurance companies and private equity firms to buy into some of the world's riskiest investments remains unclear. But investors said Monday they were unlikely to buy into the idea unless the government puts up a lot of the money and promises to absorb a lot of the losses if things go badly.

"The first loss has got to be the government's," said Wall Street veteran Muriel Siebert, who runs the brokerage Muriel Siebert & Co. "Maybe the first 25 percent of losses. We don't know what's in some of those bonds."

Billionaire Wilbur Ross, who runs the private equity firm WL Ross & Co., said investors want to know how much risk the government will accept if the investments go sour, and how much money the government is willing to put up — likely in the way of low-interest loans...

Obama Calls Anew for Swift Action on Economy

February 8, 2009

AP - Making his case in the most dire terms, President Barack Obama said that if Congress does not quickly pass an economic stimulus package, the nation will slip into a crisis so deep that "we may be unable to reverse" it.

Sound familar?: President Bush Urges Congress to Pass Bailout Bill
September 25, 2008

CNN - U.S. President George W. Bush, saying "our entire economy is in danger," urged Congress to approve his administration's $700 billion bailout proposal. "We're in the midst of a serious financial crisis, and the federal government is responding with decisive actions," Bush said.

Bush pointed out that the collapse of several major lenders was rooted in the subprime mortgage market that thrived over the past decade. He said passage of the $700 billion bailout proposal was needed to restore confidence in the market. "I'm a strong believer in free enterprise, so my natural instinct is to oppose government intervention," he said. But "these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence.

"Without immediate action by Congress, America can slip into a major panic."

Summers Warns that Stimulus Battle Not Yet Over

February 8, 2009

AP - One of President Barack Obama's top economic advisers forecast Sunday a difficult struggle with Congress over Senate cuts of $40 billion for state and local governments from the administration's massive spending and tax cut package to stimulate the failing economy.

The $827 billion Senate version of the plan — designed to bring the economy out of the worst downward spiral since the Great Depression — was expected to pass the Senate on Tuesday. The House had already passed its $819 billion version of the measure... [Poster's Note: If there are $40 billion in cuts, why did it go from $819 billion to $827 billion?]

Obama Losing the Stimulus Message War

February 5, 2009

Politico - Despite Obama’s sky-high personal approval ratings, polls show support has declined for his stimulus bill since Republicans and their conservative talk-radio allies began railing against what they labeled as pork barrel spending within it.

The sheer size of it — hovering at about $900 billion — has prompted more protests that are now causing some moderate and conservative Democrats to flinch and, worse, hesitate.

The anxiety over lost momentum seemed almost palpable this week as the president in television interviews voiced frustration with his White House’s progress and the way his recovery program was being demonized as a Democratic spending frenzy...

VIDEO: Biden Pushes Hard for Stimulus

As Layoffs Rise Across U.S., One Employer is Hiring: Uncle Sam

February 1, 2009

AP - While the nation's 11 million unemployed and the millions more who fear losing their jobs may feel Washington should streamline too, economists say a strong federal work force is key to economic recovery. Were President Barack Obama to put any of the nearly 2 million federal civil servants out in the street in the middle of the worst economic downturn since the Great Depression, the consequences could be dire.

"Federal belt-tightening would worsen the problem right now," said Kevin Hassett, director of economic policy studies at the American Enterprise Institute, a conservative think tank. "Most economists agree that the federal government is a built-in stabilizer," said Hassett, a former adviser to GOP presidential campaigns.

Obama's proposed $800-plus billion economic aid plan, which includes heavy spending on public works, is expected to increase the ranks of government workers, although mostly at the state and local level...