Economic Recovery Measures
This morning, a Wall Street Journal article reported that the White House intends to use some of the remaining TARP cash for deficit reduction, while also keeping some funds available for emergencies.
In a recent report from the Center on Budget and Policy Priorities (CBPP), mid-year budget shortfalls, totaling $16 billion or 4 percent of these budgets, have already opened up in 26 states. As the mid-point of FY 2010 (which began July 1 in most states) approaches, states have seen revenues fall below previous projections. Our friends over at Value Added have also commented on the report here.
Yesterday, the Treasury announced that the Capital Assistance Program (CAP), one of TARP’s several programs, will close, having made no investments since its creation in February 2009.
On Friday, the President signed into law a bill to extend several notable provisions under February's American Recovery and Reinvestment Act.
Here are the highlights from this weekend’s editorials on fiscal and budget policy:
According to the Bureau of Labor Statistics’ monthly report, the unemployment rate made a stunning leap in October from 9.8% in September to 10.2%, the highest rate since April 1983. Since the recession started almost two years ago, employment has declined by 7.3 million.
UPDATE: The Senate has passed a bill to extend jobless benefits, a bill which also includes the extension in the homebuyer tax credit and carry-back period for losses.
Yesterday, the Congressional Budget Office put out An Overview of Federal Support for Housing. In the report, CBO outlined the nearly $300 billion in housing-related spending and tax breaks offered this year.
Recently, the government has undertaken extraordinary efforts to help prop up the housing sector. Interestingly enough, though, most of our support for the sector has nothing to do with the current economic crisis, and has been in place for decades.
On Friday evening, the FDIC reported that it has taken over an additional nine banks (FDIC Closes Nine Banks) for a cost to the FDIC of around $2.5 billion. This brings the total number of failed banks in 2009 to 115. Total deposits of all failed banks now equal $104.7 billion for 2009 and over $338 billion since the beginning of 2008, all at an estimated cost to the FDIC of over $51 billion.