congress, Economic Stimulus Package, Federal Reserve, George Bush, Subprime Crisis, US Economy
congress, Economic Stimulus Package, Federal Reserve, George Bush, Subprime Crisis, US Economy

Doubts Being Raised About Effectiveness Of Economic Stimulus Package

Financial Times   |  Jeremy Grant   |   February 3, 2008 04:31 PM


stumbleupon :Doubts Being Raised About Effectiveness Of Economic Stimulus Package   digg: Doubts Being Raised About Effectiveness Of Economic Stimulus Package   reddit: Doubts Being Raised About Effectiveness Of Economic Stimulus Package   del.icio.us: Doubts Being Raised About Effectiveness Of Economic Stimulus Package

Only 11 days after the White House and House of Representatives agreed a $150bn (€100bn, £76bn) economic stimulus package for the US economy, a Senate version is expected to reach the floor of the chamber for a vote on Monday.

But lawmakers are questioning whether it will do more than send a message that Washington is trying to forestall a full-blown US recession.

Instead of borrowing to fund tax rebates , some suggest there should be a focus on tackling a worryingly high home foreclosure rate. "To the extent this economic crisis has a face: it's housing. And to the extent there's a face on the housing crisis, it's the foreclosure ­crisis," said Christopher Dodd, Senate banking committee chairman, last week.
In October, the administration assembled the Hope Now Alliance, a coalition of mortgage lenders, mortgage servicers and counsellors to help subprime homeowners refinance in order to stay in their homes.

While this was billed as an "aggressive, comprehensive plan", some Democrats say it is moving too slowly. Last week the non-profit Center for Responsible Lending claimed Hope Now would prevent foreclosures in only 3 per cent of the outstanding subprime mortgages with adjustable rates. It said foreclosures were outnumbering loan modifications by 13:1.

The Mortgage Bankers Association takes issue with the report, citing figures from rating agency Moody's that show that more than 50 per cent of borrowers with subprime adjustable rate mortgages due to reset in the first eight months of 2007 refinanced or otherwise paid off their loans prior to reset.

Keep reading here. (Subscription required)

Comments for this post are now closed


 
 

Comments
24
Pending Comments
0

Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to

View Comments:
- Nova16 See Profile I'm a Fan of Nova16 permalink

Translation(Lammert)of the economic mumbojumbo--We are in an economic free fall with a hard landing. Now, who wants lemonade?

    Favorite    Flag as abusive Posted 10:23 AM on 02/05/2008
- Nova16 See Profile I'm a Fan of Nova16 permalink

With personal and public debt at galactic levels, recession, endless war squandering our wealth and draining our treasury, energy costs thru the roof, falling dollar, credit crunch, housing and construction in trouble, outsourcing, unemployment, the loss of 3 million mfg jobs under Bush, current accounts deficit and scheduled to grow and our crumbling infrastructure, the need for stimulus is nothing more than a psychological tool to dupe the people into believing that the inept, incompetent government that has created the mess we're in knows what it's doing.

    Favorite    Flag as abusive Posted 10:10 AM on 02/05/2008
- WorkingClass See Profile I'm a Fan of WorkingClass permalink

I heard that the all powerful, all knowing United States government is going to borrow three hundred dollars somewhere and send it to me. I know just what I'm gonna do. First I'm gonna buy a gun. Then .......

    Favorite    Flag as abusive Posted 08:52 AM on 02/05/2008
- Tator See Profile I'm a Fan of Tator permalink

The Democrats support the rebate to help the economy and the common citizen. Meaning they see more money in the citizens hands as a good thing.

Then why do they want to raise taxes on everyone. You moonbats do understand when Bushes tax break expire because the Democrats do not support it the working guys current tax rate will increase by 50% from 10% to 15% bracket.

So moonbats please explain how today having more money in the working guys hands is good for the economy and in the near future taking money form the working guy is good for the economy?

    Favorite    Flag as abusive Posted 05:45 AM on 02/05/2008
- sheila See Profile I'm a Fan of sheila permalink

If the want to fix the economy, why don't they install $200 Billion worth of solar panels on all our roofs and force the utilities to buy back 100% of our power at the "peak" retail rate for the next 20 years?

We all start getting checks (so we spend more over 20 years), greenhouse gases are enormously reduced, tens of thousands of construction and factory workers get their jobs back, and the utilities who have been bleeding us dry disgorge a teensy percentage of their ill-gotten gains, instead of turning the "renewable energy" boom into an all new opportunity for monopoly, manipulation, wilderness death and eminent domain.

why can't we ever get our tax dollars to be invested in US when they are constantly throwing our money at utilities who rip us off, bulldoze our beautiful open spaces, and set our neighborhoods on fire with their sloppy transmission lines?

    Favorite    Flag as abusive Posted 02:01 AM on 02/05/2008
- ReasonIsMyReligion See Profile I'm a Fan of ReasonIsMyReligion permalink

Wowza.

Ya mean giving debt-ridden, recession-fearing, wage-droppin plebes a few bucks to buy foreign goods isn't priming the US economy?

Whodathunkit.

    Favorite    Flag as abusive Posted 05:02 PM on 02/04/2008
- mmckinl See Profile I'm a Fan of mmckinl permalink

Bribing people with their own money ...

This will create another trillion in the system with debt based fractional banking allowing more and more bailout money for the banks.

    Favorite    Flag as abusive Posted 03:42 PM on 02/04/2008
- mrcontinental See Profile I'm a Fan of mrcontinental permalink

Doubts? I have no doubt that it will accomplish nothing.

    Favorite    Flag as abusive Posted 10:34 AM on 02/04/2008
- robinhood1 See Profile I'm a Fan of robinhood1 permalink

If you live in a high cost metro area, chances are you make too much money too qualify for the tax rebate. You'd be hard pressed to afford even a small condo in San Francisco with a salary of $90,000 per year. But at least it should give you an idea of who the folks in Washington consider rich. Be prepared for a big hike in your income taxes in 2009 and later, even if the House leadership says any tax increase would "only apply to the rich". Think about what your take home pay will look like in 2009 before you vote in November, especially if you make too much money to qualify for government subsidies. If you are a retiree who depends on investment income to pay most of your bills, find out where your preferred candidate stands on the taxing of dividends. Be careful about what you wish for; you may not like the results.

    Favorite    Flag as abusive Posted 12:47 AM on 02/04/2008
- fedupwiththis See Profile I'm a Fan of fedupwiththis permalink

Let's see...Exxon/Mobile just announced 40 billion dollar PROFIT last year. Microsoft wants to buy Yahoo! for $44 billion. That's just over half what Shrub wants to lend us from next year. As Lewis Black says in his routine from a few years ago..."if we all got together and spent our $600 at the exact same moment it might put a blip on the radar...otherwise, fuggedaboudit."
Shrub came in on a recession which he blamed on Clinton when in actuality he and numb nuts Cheney spent the last couple of months of Clinton's tenure talking down the economy to justify his tax give away to his, appropriately named, "base". Who is he blaming this one on? The slim majority the Democrats have in Congress, of course.
It's going to be a dark ride folks. We now get to pay for the disaster Bushco has created. At the same time we get the pleasure of hearing the nimrods in dumfukistan laying the blame everywhere but at their own doorstep.

    Favorite    Flag as abusive Posted 08:43 PM on 02/03/2008
- smokeystover39 See Profile I'm a Fan of smokeystover39 permalink

In plain english the $600.00/$1200.00 "rebate" is insignificant in an economy as large as ours. Even if it had some impact the results would not be seen for many quarters - so this is not an "instant" fix. It's a BINKEY - the same kind your mother gave you when you cried for the bottle. It feels good, but contains NO nurishment. Add to this the "rumor" that the so-called rebate is a shrink of your 2008 income tax (filed by 4/15/09)refund. More smoke and mirrors??



    Favorite    Flag as abusive Posted 06:10 PM on 02/03/2008
- loki See Profile I'm a Fan of loki permalink

man are these so called Economic Experts slow. Just about everyone in America new this.. YOu cant help the economy by giving the same corporations who drove us into this tail spin a reward. They will just continue on doing what they did to get us here.

Since pre 1929, all our economic downfalls were caused by the US style Capitalist. Greed driven narcissism , its all mine and I deserve it all, Capitalistic Aholes.
You stop them, you can stop much of the problems.
No , capitalism isnt a bad thing, its just that US style capitalism of greed, supreme power over even our government, and exclusion of Americans is.

    Favorite    Flag as abusive Posted 05:34 PM on 02/03/2008
- ajax2 See Profile I'm a Fan of ajax2 permalink

The $3 trillion Bush's proposes spending in 2009 would be the first time that milestone has been reached. Bush also presided over the first budget to hit $2 trillion, in 2002. It took the government nearly 200 years to reach the first $1 trillion budget, which occurred in 1987 during the Reagan administration.

    Favorite    Flag as abusive Posted 05:19 PM on 02/03/2008
- LammertMacroeconomics See Profile I'm a Fan of LammertMacroeconomics permalink

Within the larger framework of Macroeconomic Saturation, Decay Model G is a perfect fractal fit. The CRB reached an intraday high on 1 February 2008 before falling. It is likely the contracting global money supply has pushed the CRB to its saturation high. From its low on 16 August 2007, gold, the CRB's proxy and an anacronism for wealth in a nuclear world, completed a 11/28/22/18 day Lammert fractal progression with a 9 day base in the final 18 days. From this base a 9/21/21 day fractal was completed with day 21 of the third fractal resting midposition in a 5 day saturation cup from days 19-23. On 1 February gold potentially completed a 17/34/34 month growth fractal from its 20 year lows in 2000. For the Wilshire 1 February completed a 20/50/49 day averaged x/2.5x/2.5x deteriorating growth fractal dating from 16 August 2007. Can Federal Reserve monetary policy and congressional fiscal/tax/late mortgage policy alter Macroeconomic fractal progression? Expect a nonlinear devolution break on 4 February 2008

    Favorite    Flag as abusive Posted 05:14 PM on 02/03/2008
Comments are closed for this entry

You must be logged in to reply to this comment. Log in

 
 

Stock Quote

Enter a ticker symbol below:

Data provided by AOL