Tag Archives: taxpayer money

With Obama’s Plan, America Will Go Bankrupt

US president battles criticism and recession

GOP predicts doomsday if Obama budget passed

Congressional Republicans on Sunday predicted a doomsday scenario of crushing debt and eventual federal bankruptcy if President Barack Obama’s massive spending blueprint wins passage.

But a White House adviser dismissed the negative assessments, saying she is “incredibly confident” that the president’s policies will “do the job” for the economy.

In a TV interview, Obama himself laughed when discussing the dire state of parts of the economy — and ascribed his laughter to “gallows humor.”

White House Council of Economic Advisers chairwoman Christina Romer insisted that the nation’s flailing economy will be rebounding by 2010.
Administration officials — and the president himself — have taken a cheerier tone despite economic indicators that are anything but positive.

“I have every expectation, as do private forecasters, that we will bottom out this year and actually be growing again by the end of the year,” Romer said.

The president, in an interview that aired Sunday on CBS News’ “60 Minutes,” talked about the need to spend taxpayer money to save financial firms and the auto industry.

“I just want to say that the only thing less popular than putting money into banks is putting money into the auto industry,” Obama said with a laugh. Full Story

Obama’s Plan is Fueling Inflation, and Protests

Economists criticise US bailout plan

Americans are becoming increasingly anxious over how the economic crisis is being handled.

They are taking aim at Wall Street, and are protesting over the multi-million dollar bonuses paid to executives at the insurance company AIG after it was bailed out using taxpayers’ money.

Now economists fear that the US president’s strategy for economic recovery will fuel inflation.

‘Large, Greedy, Reckless Financial Institutions’ Get Bailout

Sen Sanders questions Fed Chairman Bernanke

U.S. senator wants Fed to name loan recipients

A U.S. senator berated Federal Reserve Chairman Ben Bernanke on Tuesday for refusing to name banks that borrow from the central bank and introduced legislation that would require public disclosure.

In a testy exchange at a hearing before the Senate Budget Committee, Vermont Sen. Bernie Sanders, an independent who usually votes with the Democrats, said he found it “unacceptable” that the central bank risked taxpayer money without detailing where the funds went.

“My question to you is, will you tell the American people to whom you lent $2.2 trillion of their dollars?” Sanders asked, referring to the size of the Fed’s balance sheet.

Bernanke responded that the Fed explains the various lending programs on its website, and details the terms and collateral requirements.

When Sanders pressed on whether Bernanke would name the firms that borrowed from the Fed, the central bank chairman replied, “No,” and started to say that doing so risked stigmatizing banks and discouraging them from borrowing from the central bank.

“Isn’t that too bad,” Sanders interrupted, cutting him off. “They took the money but they don’t want to be public about the fact that they received it.”

According to the text of the proposed legislation, e-mailed by Sanders’ staff, he wants the central bank to identify any firm that has received financial assistance since March 24, 2008, including details on the type of borrowing, amount, date, terms and the Fed’s rationale for lending.

Sanders wants the Fed to publish those details on its website and update them at least every 30 days.

Full Story