Obama Stimulus Packages
July 23, 2009
By Padmini Arhant
Forwarding Bailout Details:
From: Stimulus Package Details
Source: http://www.stimuluspackagedetails.com/obama.html – Thanks.
In 2009, the Obama administration began the year by handing out economic stimulus packages.
In the first 60 days in office, President Barack Obama spearheaded
A $787 billion economic stimulus package based on job creation and tax cuts,
A $275 billion mortgage stimulus program aimed at saving troubled homeowners from foreclosure,
A $30 billion bail out to AIG (which added to the $150 billion the Bush Administration gave the insurance giant in 2008), and
A $1 trillion “toxic asset” buyout program designed to get under-water assets off the balance sheets of America’s banks so that the banks could begin lending again.
At the end of March 2009, the Obama Administration gave automakers General Motors and Chrysler another $22 billion in low-interest loans.
In June, the Obama Administration gave General Motors another $30 billion to help steer it through bankruptcy.
Total Obama Stimulus Package – $2.1 trillion dollars – $2 trillion and $144 billion dollars, of that $1 trillion relates to “toxic asset’ program.
Timelines Of The Obama Economic Stimulus Packages
Following is a timeline of the economic stimulus packages, in chronological order.
February 2009 – $787 Billion Stimulus Package – Average Americans Bailout
The Obama Administration and Congress authorized $787 billion in spending and tax cuts, primarily to create or save an estimated 3.5 million American jobs.
February 2009 – $275 Billion Stimulus Package – Homeowners Bailout
The Obama Administration handed out a $275 billion mortgage stimulus plan, designed to assist more than 9 million American homeowners in refinancing their home loans or averting foreclosure. Of the $275 billion stimulus, $75 billion was allotted for direct spending for keeping people in their homes, and $200 billion came in the form of additional help for Fannie Mae and Freddie Mac.
(See above, in the July 2008 entry, for more information on the first economic stimulus package that was awarded to these mortgage giants.)
March 2009 – $30 Billion Stimulus Package – AIG Bailout
The federal government intervened once again to help insurance giant AIG, this time in the form of a $30 billion loan from TARP funds. (See above in the September-November 2008 entry, for more information on other AIG bailouts.)
March 2009 – $15 Billion Stimulus Package – Small Business Loans
The Obama Administration introduced a $15 billion economic stimulus venture aimed at the small business lending market to get money flowing into small business lines of credit again.
March 2009 – $1 Trillion “Toxic Asset” Program – Banks Bailout
The Obama Administration launched a public-private economic stimulus venture (involving the U.S. Treasury and FDIC) to try to get toxic assets off the balance sheets of banks so that they can return to normal lending practicesMarch 2009.
March 2009 – $22 Billion Stimulus Package – Automakers Bailout
The Obama Administration extended another $22 billion in loans to Chrysler and GM, this time, with strings attached, including the firing of General Motors Chairman Rick Wagoner.
April 2009 – $1 Trillion Stimulus Package – G-20 World Leaders Stimulus
The leaders of the 20 most powerful countries in the world (representing 85% of global economic production) convened in London and agreed to $1 trillion in economic stimulus funds, as well as tighter global financial regulations.
Economic Stimulus Details:
$787 Billion Obama Stimulus
The $787 billion economic stimulus bill signed into law by President Barack Obama in February 2009 was more detailed, 1,071 pages to be exact. To summarize, here’s where the money’s supposed to go:
$288 billion – tax relief
$144 billion – state and local municipalities*
$111 billion – infrastructure and science
$81 billion – poor and unemployed
$59 billion – health care
$53 billion – education and training
$43 billion – energy
$8 billion – other
$1 Trillion Obama Stimulus
The $1 trillion toxic asset purchase program, announced by U.S. Treasury Secretary Timothy Geitner in March 2009 will be seeded with $75 billion to $100 billion in funds from the TARP program.
Presumably, this government pledge will be enough to attract funds from private investors (hedge funds, endowments, private equity funds, and institutional investors), to the tune of $500 billion to $1 trillion.
The premise is that hearty private investors will buy “toxic assets” from the banks, at a fraction of their book value. The Federal Deposit Insurance Corporation (FDIC) will get in on the deal by guaranteeing debt-financing issued by public-private entities.
Is The Economic Stimulus Package Working?
As for 2009, it’s too soon to tell whether the $787 billion job creation and tax cut stimulus, the $275 billion mortgage stimulus, and the $1 trillion “toxic assets” purchase programs are working.