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Some Updates on the Stimulus Bailout…..It is at mid-stride!

Quietly something is going on in the Bailout program America adopted a year ago…..

I often reminf=d my fellow Dog pound members that the media…and thefore the public have short memories…..

I found this piece in MyDD by Jerome Armstrong to remind me about the status of the Stimulus program that Obama signed into law…

While people like TPL here laments the program…..

The fact is…… the program is JUST beginning to reach it’s highpoint...

I have mentioned in posts months ago that the program is set up to infuse the maximum amount of capital into the Economy from now untill the middle of NEXT YEAR…

That is no coincidence since the Democrats will be starting their run for the 2012 Presidential election at about that time….

So the program is quietly running and making sure that the DEmocrats have a ACe to play before the next big election cycle….

The US Economy is quietly being funded for the next year by the government….

Which is ….‘too big to fail’….

I’m sure you’ve seen a poster or politician refer to the bailouts as TARP alone, and say things such as “its almost repaid”. Not even. Here’s a handy PR full of links for referral:

STEALTH BAILOUT UNDERWAY Bailout Cost Still Increasing, $4.71 Trillion Now Disbursed

Today, the Real Economy Project of the Center for Media and Democracy (CMD) released an update on CMD’s total Wall Street Bailout accounting that unlike other bailout assessments includes Federal Reserve loans.

In total, CMD found that over the last month, the funds disbursed by the Federal Reserve, Treasury and FDIC in the bailout have increased by $47 billion to $4.71 trillion. CMD also found that the total outstanding amount has increased $26.4 billion to $2.01 trillion.

$19 billion of the $47 billion increase is from the Preferred Stock PurchasesProgram of the U.S. Treasury Department. The funds are being used to prop up Fannie Mae and Freddy Mac in order to keep the mortgage market from collapsing entirely after Wall Street destroyed it through the use of derivatives and exotic mortgage-based financial products. The program, which formerly had a cap of $400 billion, was uncapped and given an unlimited credit line in a late, Christmas Eve announcement timed to avoid public scrutiny.

The Federal Reserve is also taking aggressive action to prop up the housing market. The Fed has now disbursed a total of $3.9 trillion, or 83% of the bailout’s total. $1.4 trillion, largely in mortgage-backed securities issued by Fannie and Freddie, remains outstanding. Figures come from the Federal Reserve’s own accounting.

“The Obama administration keeps telling us the bailout is winding down, but a ‘stealth’ bailout is underway as funds are being disbursed to prop up Fannie and Freddy with little Congressional discussion or debate,” said Mary Bottari, Director of CMD’s Real Economy Project. A recent article in the New York Timesspeculated that Fannie and Freddy are suffering huge losses because they were paying too much for mortgages in a back-door effort to aid mortgage lenders.

Learn more about the 35 programs included in our bailout tally by visiting ourTotal Wall Street Bailout Cost Table, which contains links to pages on each bailout program with details including the current balance sheet for each program. CMD also publishes a Financial Crisis Tracker, a widget for the table that can be downloaded to websites to get up-to-date numbers on the financial crisis and the bailout.

The Center for Media and Democracy is an independent, non-profit, non-partisan, public interest organization located in Madison, Wisconsin.

The extent of the bailouts now extends into Europe, and is arguably just beginning……

More……..


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May 18, 2010 - Posted by | Other Things | , , ,

3 Comments »

  1. […] This post was mentioned on Twitter by James Finley. James Finley said: Some Updates on the Stimulus Bailout…..It is at mid-stride!: http://wp.me/pAL4p-2Ub […]

    Pingback by Tweets that mention Some Updates on the Stimulus Bailout…..It is at mid-stride! « PoliticalDog101.com -- Topsy.com | May 18, 2010 | Reply

  2. The program, which formerly had a cap of $400 billion, was uncapped and given an unlimited credit line in a late, Christmas Eve announcement timed to avoid public scrutiny.
    —————-

    Obama Administration SNEAKY as ALWAYS

    Here in SC our stimulus money will not be available for Health Care programs for fiscal year 2011

    Comment by Timothy Leal | May 18, 2010 | Reply

  3. Funny, I was checking the recovery site the other day – wondering when the rest will be spent. It’s still over half of it left..

    Comment by talkandpolitics | May 18, 2010 | Reply


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