Busted: Bankers and The Global Economy

June 10, 2008

What are the Feds Doing with Stimulus Money?

President Bush signed the Economic Stimulus Act of 2008 back on February 13, calling his stimulus idea a “booster shot” for the American economy. At the signing ceremony, Bush stated, “The bill I’m signing today is large enough to have an impact, amounting to more than $152 billion this year, or about 1 percent of the GDP (gross domestic product).”

At that time, the government mandated that checks be issued to qualified citizens through May. The process has dragged on through June. Some Americans have not received their promised stimulus payments through the Internal Revenue Service.

Barack Obama is circling the country in a two-week campaign. He is proposing that lawmakers should inject another $50 billion immediately into the sluggish U.S. economy. Mr. Obama noted the largest monthly increase in the unemployment rate in over 20 years. He intends to use his position in the Senate to generate a movement for “another round of fiscal stimulus, an immediate $50 billion to help those who’ve been hit hardest by this economic downturn.”

Mr. Obama supports the expansion and extension of unemployment benefits, as well as a second round of tax rebate checks. “Relief can’t wait until the next president takes office.”

Federal unemployment benefits for people out of work are usually limited to 26 weeks. A movement of Democrats wants to add another 13 weeks plus an additional 13 weeks in states with unemployment of 6% or more. President Bush has previously been against extending unemployment benefits, preferring to bail out imprudent banks and mortgagers.

On June 6, the Treasury Department reported that it has sent out nearly 67 million in stimulus payments worth approximately $57 billion. Now the important question comes to mind. The stimulus package was advertised as a $152 billion stimulus. Where is the remaining $95 billion stipulated by the first stimulus plan?

Now, we are talking about a new stimulus plan as if the first stimulus plan is complete. Where did the money go? What is Washington up to? Is the stimulus a straw dog of sorts? Has economic stimulus become mere hype?

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April 11, 2008

The Housing Bailout Battle

Filed under: banking, credit, government, politics — Tags: , , , , , , — digitaleconomy @ 7:26 pm

President Bush has decided to scramble for his own federal aid project for homeowners. At the end of the eleventh hour, Bush has decided to head off foreclosures, clashing with both parties who want the government to step in with a broad housing rescue.

Bush plans to use an existing Federal Housing Administration program to enable more low and moderate income borrowers to refinance into government-insured mortgages that they can afford.

The Democrats have been pushing to have the FHA back $400 billion in restructured loans for distressed borrowers if lenders were willing to take a substantial loss on mortgages. The idea is that bankers owe government and taxpayers something for bailing them out of their fiscal crisis. (more…)

April 3, 2008

Senate Works to Assist Homebuyers

mortgage-foreclosure.jpgSenate Democrats and Republicans start debating a bipartisan $15 billion housing relief package today that is expected to go to vote early next week. According to the Senate, the funding package has new measures to make loan by the FHA more accessible, funding to assist borrowers to refinance unaffordable loans and fund a business tax break for homebuilders. A new alteration in tax code will allow for a new tax credit and deduction for homeowners. The plan also includes some generic provision to boost neighborhoods with properties in foreclosure.

The Democrats pushed for a change in bankruptcy law that would allow judges to lower the value of residential mortgage debts which is expected to be added as an amendment to bankruptcy code.

March 31, 2008

Senators Admit Mortgage Debacle Last Summer

Filed under: banking, credit, federal reserve, money — Tags: , , , , , , , — digitaleconomy @ 1:28 am

Busted Bankers has detailed extensively the attempted cover up of the subprime banking crisis by the United States government. Unfortunately, news articles on the topic are virtually non-existent. We have recently located an article published by Reuters UK which indicates that an effort headed by New York Senator Schumer was made to cover the subprime mess by having federal banking corporations Freddie Mac and Fannie Mae ready to refinance failing subprime loans. The companies were under orders from their federal regulator to freeze mortgage holdings at about $1.4 trillion. Schumer, the head of the Senate banking committee (more…)

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