Economic Recovery Measures
Congressional Oversight Panel Reports on Bailout of Auto Industry
This morning, the Congressional Oversight panel released a report on the use of TARP funds to bailout the auto industry, stating that the federal government is unlikely to recoup all of the bailout funds invested in General Motors and Chrysler.
Budgeting through Footnotes
This morning, Lori Montgomery of the Washington Post reported on the decision of the Obama administration to incorporate $85 billion in tax breaks from the stimulus package into baseline figures of current policy.
The Ups and Downs of Buttressing the Economy
Yesterday, the Wall Street Journal posted an article discussing the FDIC’s soon-to-be urgent need to draw money from its $500 billion Treasury line of credit. Last week, the FDIC reported that its deposit insurance fund, which insures over $4.5 trillion in U.S. bank deposits, fell to $10.4 billion by July. That’s down from $45.2 billion a year ago.
Fiscal Space, Stimulus and Entitlement Cuts
Given the weak economy, how do we balance our need for economic stimulus now with our need to get our fiscal house in order to prevent the age and health-related tsunami? Can we address both our short-term and long-term problems at the same time?
FOMC Leaves Stance Unchanged
August 12 - The key Fed policymaking body, the Federal Open Market Committee (FOMC), released its statement today following its regularly scheduled two day meeting.
Top Senate Democrats Look to Reinforce Cash for Clunkers Before Recess
August 5 - Harry Reid and other top Senate officials are confident that a vote to extend the Car Allowance Rebate System (Cash for Clunkers program) will take place before the August recess. The Cash for Clunkers program rewards American car buyers with a $3,500 to $4,500 rebate if the consumer trades in their car for a more fuel efficient vehicle.
Second Quarter U.S. GDP and the Stimulus Package
July 31 - U.S. real GDP declined by 1.0% (annual rate) in the first quarter, the fourth straight quarterly drop, according to today's report by the Commerce Department. While the economy has shown considerable improvement since the first quarter (-6.4%, revised downward), it remains weak and vulnerable to unexpected developments.
Fed Chairman Bernanke Reports to Congress
July 21 - Federal Reserve Board Chairman presented his twice a year monetary policy testimony and the Fed's semi-annual monetary policy report to Congress.
NEC Director Summers at Peterson Institute
July 17 - President Obama's chief economic adviser Lawrence Summers spoke today to the Peterson Institute for International Economics on "Rescuing and Rebuilding the U.S. Economy". Key points:
- When the administration took over, the U.S. economy was "at the brink of catastrophe" and "the economy was in free fall". Six months later, things look better although challenges clearly remain.
Cross Currents in the Economy and Financial System
July 16 - Cross currents in the U.S. economy are particularly evident today and illustrate why it is so difficult to figure out where the economy is heading.
