Verdict on the Health Care Legislation

July 30, 2009

By Padmini Arhant

The health care legislation vigorously contested by the opponents of the economic recovery and the unemployment deterrence. Sometimes, it’s easier to deal with the ‘devil’ you know than the ‘devil’ you don’t. The existing health care crisis contributed by the health care and insurance conglomerate’s profit raking strategy fits in with the metaphor.

When the people strive to make it to the top of the slippery slope titled the sensible health care legislation their harnesses are either tampered with or forcibly pulled off by the groups posing as the ‘rescue guards,’ i.e. the representatives in the House and the Senate obligatory to their financiers – the special interests.

In the interim, the ‘so-called’ bipartisanship in the Senate with some prominent legislators and selective House members from both sides of the aisles holding substantial investments in the health care stocks are focused on safeguarding their investments with assurances to the health industry – ‘your wish shall be my command.’

The House and the Senate version presented thus far is directly contradictory to the populist requirement and the President’s initial plan. The shameful tactic in the twentieth century – apart from paralyzing the health care reform, it’s also instrumental for the status quo and they are indicated in the article below.

Deal with ‘Blue Dogs’ sets up health care vote

Associated Press – 07/29/09

“The House changes, which drew immediate opposition from liberals in the chamber, would reduce the federal subsidies designed to help lower-income families afford insurance, exempt additional businesses from a requirement to offer insurance to their workers and change the terms of a government insurance option.

More problematic from the Democrats’ point of view is a tentative agreement to omit a provision in which the government would sell insurance in competition with private industry. In its place, the group is expected to recommend non-profit cooperatives that could operate at the state, regional or even national level.

Nor is any bipartisan recommendation likely to include a requirement for large businesses to offer insurance to their workers. Instead, they would have a choice between offering coverage or paying a portion of any government subsidy that non-insured employees would receive.”

What is wrong with the classic ‘pro-industry’ proposal to appease the health care enterprise at every insured and uninsured American taxpayer’s peril?

Firstly, the House bill to reduce the federal subsidies designed to help lower-income families afford insurance, instead of demanding the health care system comprising the AMA, health care providers accepting Medicare and Medicaid, Pharmaceuticals, the hospital industry…and the insurance industry mark-down the preposterous profit margins hidden in the superficially inflated costs driving the economy and every citizen to bankruptcy.

If there is any resistance from the groups in this regard, then taxing the expensive insurance coverage ensuring the tax liability on the industry rather than the end-consumer is absolutely necessary. If it was already agreed to by all negotiators then the measure combined with higher taxes on capital expenditures by the industry should adequately cover the increase in federal subsidies to the economically disadvantaged.

The health industry in their defense might argue that the supply and demand market forces drive the costs in a free market system. In this context, the commonly unknown fact being, the health industry unlike other industries are uniquely advantaged to thrive throughout with excessive demand arising from the myriad of sources causing illnesses to a vast population of which an alarming proportion fall in the >‘unhealthy’ category.

In the absence of robust competition from a government provided affordable health care, the industry giants have the expansive field wide open to themselves with a huge demand as the catalyst for the exorbitant profits in products and services.

In addition, the major market-share by the big players lay overcast of monopoly for others to compete effectively with the price factor, notwithstanding the industry protocol on limited choice and coverage of care at disproportionate costs.

The non-profit cooperatives have been recently involved in financial mismanagement as reported in California and severely lack in efficiency, ultimately benefiting the current private care system by default. Therefore, it’s not surprising for the industry groups to lobby for the non-profit cooperatives against the government run program.

The bill doesn’t end there. Ice cream is more delicious when served with toppings.

With respect to the businesses and large corporations exempt from the insurance coverage requirement to their workers and employees, it’s yet another ‘dessert’ moment for the legislators playing gracious hosts to the corporate musketeers.

Obviously, the lawmakers more appropriately the lawbreakers are falling head over heels in their romance with the corporate sponsors by relieving them from the fundamental responsibility to care for their workers and employees with health insurance while leaving the underemployed American workforce to fend for themselves in the profit manifested exclusive private health club.

As for the Blue Dogs, a misnomer to the species iconic for their unflinching loyalty, unequivocally clarify that ‘conservatism’ motto regardless of political factions is to delay, defeat and derail national progress. Clearly, the democratic electorate will be able to overcome the obstacle by replacing the obstructionists with the supportive ones in the 2010 elections.

To summarize, the health care casserole prepared by the House and the Senate in the Congress is palatable to the industry as the primary patrons and the caterer of the special menu. The remaining large starving population having peeked at the menu items forced to fake satisfaction from the aroma of the dish, although meant for the populist but served to win over the mighty health care industrialists.

Seriously, if this health care legislation meant to be a ‘reform’, then the bill must include the public option plan, increased federal subsidies, free health care for the most impoverished and a nondiscretionary business/Corporate health insurance for all workers and employees.

Failing that, it would be a band-aid treatment for a widespread chronic ailment in the industry gorging profits at every opportunity and the ‘so-called’ solution will be a cyclical nightmare for the nation attempting its way out of the quick sand economy.

The proposal funded through compromise from the industry with costs reduction equalizing profit contraction proportionate to market sustainability and tax increases suggested in the earlier House Bill itemized per extraordinary income category is the ideal gateway to true ‘reform.’

Otherwise, under the present deal the ‘weapons of mass destruction’ not found in Iraq would appropriately apply to the millions dependent on the democratic majority controlling all three branches of the government to do the right by the people.

Because the welfare of the people is paramount for the success of corporations in a capitalist or any other economic systems as people are the consumers and workers alias human capital in the economy.

Politically, irrespective of the massive corporate investment earned from the sweat and blood of the workforce, there will be no power without the people’s vote in a democracy.

Again, the health care reform will be truly meaningful and purposeful when the recommended changes addressing the plight of the people are reflected in the lifetime legislative matter.

It’s time for every American to stand up for their rights and claim the authentic universal health coverage favoring them and not the profit oriented health care industry.

Please call your local representatives and the Senators to oblige to your needs and not the special interests. Only you can make it happen this time.

Power is powerless against the will of the people in politics and economics.

Thank you.

Padmini Arhant

Judge Sotomayor’s Confirmation by the Senate Judiciary Committee

July 29, 2009

By Padmini Arhant

Supreme Court Justice Confirmation by the Senate Judiciary Committee

Heartfelt congratulations! to judge Sonia Sotomayor on her confirmation by the Senate Judiciary Committee to the highest court in the land.

Surviving a grueling confirmation hearing qualifies for a ceremonial victory. Judge Sotomayor exhibited perfection in the process that requires patience, knowledge, and skills to address issues and concerns set forth by the committee.

The final confirmation for a full Senate vote scheduled the following week will be a historic event. Besides complementing the existing judiciary talent and expertise, it would transcend identity politics that dominated since the President’s choice of the nominee for the United States Supreme Court.

However, the vehement opposition from the right side of the political aisle authenticates the partisanship prevalent in every national matter. The following news report citing the conservatives’ principles for future nominees – to prioritize fidelity to the law over personal emotions and prejudice is contradictory to their own doctrine and nine years late… considering the Presidential election outcome in the year 2000.

Judiciary Committee OKs Sotomayor for high court – Associated Press July 28, 2009.

Even though they never stood a chance of defeating Sotomayor, her Republican opponents said they gained ground during the confirmation process by getting Democrats to agree that judges should above all be faithful to the law — an idea they said counters Obama’s stated view that a justice should have “empathy.”

“We agreed that judges should be impartial and not pick winners and losers based on some subjective empathy standard or whatever is in the judge’s heart,” said Sen. John Cornyn, R-Texas. “We’ve defined where the judicial mainstream is … and we’ve set expectations, I believe, for future nominees.”

My best wishes to Judge Sonia Sotomayor, the imminent justice to the United States Supreme Court with her challenging new career and look forward to the voice of the democracy legitimized per the constitutional rule based on the humanitarian law.

Thank you.

Padmini Arhant

Mobilize America on Health Care Reform

July 26, 2009

By Padmini Arhant

Given the partisanship in Washington, the special interests and their representatives in the legislature along with the repugnant network, are emboldened more than ever to kill the health care reform simply because they are deluded in their employment security with a premium health care and a handsome reward from the industries hiring them to stomp the process.

This whole hysteria about the government incapable of handling anything right is nothing but a calculated propaganda by the health care conglomerate reluctant to part with the thriving profiteering racket within the industry.

Who is actually responsible for the current economic mess, worsening unemployment, environmental deterioration and fluctuating energy crisis?

It’s none other than the Corporations running the world empire from the financial markets, health care, energy down to the government. The Corporations through enormous funding into election campaigns and beyond successfully force their agenda by proxy in the legislation as currently witnessed in the health care, energy and financial debacle.

A classic example is the ominous California budget – deal struck between the recalcitrant Republican authorities comprising the Governor, the minority group and the special interests at the expense of the nation’s future i.e. everything to do with children from their health, human services to education and the environment.

The rumor on the rising lack of confidence among the American public towards the government performance is due for a truthful and candid explanation to demystify the myth created by the oligarchs.

The handling of Iraq war, Katrina, financial crisis and the gamut of catastrophes in the past eight years referred to as the ‘government’ failure in the present debate targeting the health care legislation
.
ALTHOUGH, THE OPERATIONS SEEMINGLY RUN BY THE GOVERNMENT IN THE PAST EIGHT YEARS, IT’S A WELL KNOWN FACT THAT THE BUSH-CHENEY GOVERNMENT WAS NEVER DEMOCRATICALLY ELECTED DURING BOTH TERMS.

IT WAS ESSENTIALLY A CHENEY’S ‘HALLIBURTON’, THE ENERGY CARTELS – EXXON MOBIL, CHEVRON DOMINATED, AND THE CREAM OF THE CROP – HENRY PAULSON’S ALMA MATER GOLDMAN SACHS AND SUBORDINATES IN THE WALL STREET MANAGED À LA CARTE ADMINISTRATION.

During the first term, in the 2000 elections the Supreme Court, the highest Court in the land returning its favor to the political faction by nominating their preferred candidate to the highest office in the land. Never mind about the popular vote and other legitimate factors in a democracy.

In the second term, the pre-meditated premise to invade Iraq besides the precisely calibrated nation unable to reject a wartime President despite the scandals and looming economic crisis camouflaged with color coded national security threat tactics, notwithstanding the deliberate malfunctioning of the electronic voting machines was symbolic in the ‘so-called’ democratic election.

Ironically, the nation particularly the privileged lawmakers with some of them having direct access to the classified information abdicated their constitutional oath to defend the sovereignty from peril, instead followed the historically deceitful administration in droves and completely swept off their feet in the ‘weapons of mass deception’ moment. They not only supported the President George W. Bush leading the nation literally to the Death Valley but also rallied behind the propaganda war machines in the media.

Perhaps, if there were any consideration then for the impact on the national deficit and the long-term economic turmoil, their constituents as the citizens of the United States would not be at the mercy of the corporate power pulling strings on the puppet legislators.

However, now when there is a real opportunity for the people to lead the governance of the nation in the most important issue of health care concerning their own life and the loved ones, the polarization on both sides of the political aisles is not surprising.

If the issue is all about costs then the legislators must earnestly review the prevailing costs driven predominantly by the health industry’s greed in the disproportionate profits draining the economy by the hour, not to mention the precious lives lost due to the partisan procrastination.

As for the Conservative Democrats, aka the blue dog members stalling the issue based on lower payments for the medical providers in the rural communities, the solution would be to set a fair standard with equal pay for all in the medical community to incentivize medical professionals outreaching the poorly served remote country areas.

This might give another reason for the opponents to distract the legislative course as further increase on the costs; again, the reallocation of the existing redundant costs would effectively address the genuine requirement.

Most legislative matters from the stimulus bills to various legislations are subject to unnecessary gridlock by the opponents on the pretext of the ‘volume’ of the information in the bill. It would save time and resources for the democratic majority and the White House administration to concise the enormity of these bills with clear and specific data relevant to all.

For instance, since utilizing technology to the maximum potential is one of the highlights of this reform, demonstrating the historic legislation with facts and figures to the public and the concerned parties would be authentic. The contemporary health care costs featured on –

The National Coalition on Health Care – NCHC Cost Fact Sheet 2009,

Source: http://www.nchc.org/facts/cost.shtml is a yardstick for trimming and improvising the macro health care budget.

The presentation must involve categories and important details such as:

What are the deductibles and co-payments under public option?

Is there any variation in costs with respect to the visit to a doctor’s office and the hospital?

Having multiple tiers in the coverage would be beneficial to both the public option plan and the consumers. The healthy population with no health insurance as a result of the current exorbitant insurance cost might be better off with at least a basic coverage for emergencies. Similarly, enabling the population with pre-existing illnesses subscribe to the appropriate insurance coverage and others depending on the personal medical history and conditions purchase the desirable and affordable coverage under public option.

Human Genomics science will enormously aid in this regard.

Certain procedures and treatments are available in private clinics and medical centers. Will the public option cover patients using those facilities for convenience and easy access, if the medical expenses are comparable – being less or equal?

Does the public option parallel with the private sector in the mandatory referrals from the primary care providers and the hierarchy for hospital treatments and procedures?

Or

Public option simplified with the hospital administration electronically verifying and billing the government by eliminating the intermediaries.

Under the exclusively private enterprise health care system, mothers and their new born babies after child birth are regularly forced out of the hospitals within twenty four to forty eight hours only to be readmitted for any complications arising from haste delivery. Thus costing everyone involved more and generating profit for the hospital industry, while the liability transferred on to the ‘supposedly’ safe and satisfied healthy insured clients by the insurance industry.

Relating to a personal experience, despite possessing the best/expensive insurance coverage during childbirth in the United States with one child born in the U.S. under the private health care system, when compared with the similar experience in the public-private medicine in Australia for another childbirth made a world of difference.

In both situations, the problems were identical with the babies developing neonatal jaundice, a common occurrence yet in the U.S.; it involved readmission in the hospital and boarding for the mother to facilitate nursing the baby undergoing treatment for the illness. By contrast, in Australia, the mother and child monitored until complete recovery and were able to deal with the same problem during that course costing less and simultaneously avoiding other health issues.

Does public option cover all aspects of health problems in the realm of modern medicine?

How much will it cost the average citizen and the insurer i.e. the government for the basic coverage?

Laying out the costs for the different tiers and categories from the pediatric to geriatric care would clarify the doubts and skepticism in the public mind. In addition, the Medicare and Medicaid situation needs elaboration under the new plan.

What the healthy insured do not realize with the status quo is, the unreasonable premiums to the insurance industry through employer-employee contributions, and above all the excess costs incurred on others with serious medical issues distributed across the board by default. The insurance industry constantly penalizes the healthy and under-utilized insurance holders by relieving itself from the financial burden created by their own profit-oriented policy.

Other matter related to the pre-existing illnesses and unaffordability is costing the county hospitals tremendously and ultimately paid by the taxpayers rather than the system with a universal coverage.

No matter how hard the opponents try to masquerade the national health care crisis under the free enterprise management, the overwhelming truth is the health care in the United States is in shambles and need urgent overhauling with respect to quality, choice and costs as urged by the President Barack Obama.

The U.S. economy cannot sustain the burgeoning health care costs and allow the health care industry continue with the ‘business as usual’ philosophy that is increasingly becoming a personal health and financial nightmare for every American.

If all fails in light of the numerous accounts and sufferings shared by the millions of citizens, it’s time for every unemployed and underemployed American to consider running for the public office in 2010 elections and remove the stalemate contributors in the state capitols and Washington from the path towards national progress and prosperity.

The uninsured and unemployed citizens as the future office bearers must note that seeking a position in the public office not only assures a job security but also comes with the best health coverage that they are being deprived of now.

Only a political challenge can bring about the real change to the system contaminated by the deadly carcinogens called the special interests.

Please mobilize America by calling the public office holders representing every constituent to honor the oath and safeguard the interests of the people entrusting power to them in a democracy and not the lobbyists financing their campaigns.

The health care reform is a life and death matter. It’s like a wildfire that would burn down the common habitat regardless of its origin.

So, please act immediately for your own survival and rescue your loved ones from the tyranny of
profit seeking multinational free market.

Change is real when it happens from the bottom up rather than the top bottom.

Thank you.

Padmini Arhant

Economic Bailouts On An Unprecedented Scale

July 23, 2009

By Padmini Arhant

Presentation of Economic Bailouts on an Unprecedented Scale

From: Stimulus Package Details

Source: http://www.stimuluspackagedetails.com/bailout.html

Mortgage Stimulus Packages

No industry has been helped more by the various economic stimulus packages than the real estate industry.

Add it all up, and $500 billion was committed in 2008 by the Bush Administration, and

The Obama Administration chipped in another $275 billion in early 2009, not to mention the $1 trillion that was designated for buying up toxic assets (which are comprised primarily of sub-prime loans given to suspect borrowers, collateralized by overvalued real estate).

Economic Bailouts On An Unprecedented Scale

Starting in 2008, and extending into 2009, the U.S. Federal Government became involved in a myriad of companies and industries, handing out bailouts at an alarming rate, blurring the lines between capitalism and socialism, free enterprise and government intervention.

Below, in alphabetical order, are the major recipients of economic bailouts.

Automakers

$25 billion in low-interest loans to General Motors, Ford, and Chrysler
$22 billion in low-interest loans to General Motors, Chrysler
$30 billion to help General Motors steer through bankruptcy
Total: $77 billion

AIG – Insurance Company

$60 billion loan – September 2008
$40 billion purchase of preferred shares – September 2008
$25 billion in purchase of toxic assets – October 2008
$25 billion loan (credit limit raised to $85 billion total) – October 2008
$30 billion loan – 2009
Total: 180 billion

Bear Stearns – Investment Bank And Brokerage Firm

$29 billion in guarantees – 2008

Fannie Mae/Freddie Mac – Mortgage Companies

$300 billion – 2008
$200 billion – 2009
Total: $500 billion

G-20 World Leaders Stimulus

$1 Trillion Stimulus Package – G-20 World Leaders Stimulus – April 2009

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.

June 2009 update: According to the Obama Administration, only about 5% of the $787 billion stimulus package passed in February 2009, has been distributed.”

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Bush Stimulus Package

July 23, 2009

By Padmini Arhant

Presentation of Bush Stimulus Package details

From: Stimuls Package details – Thanks

Source: http://www.stimuluspackagedetails.com/bush.html

Bush Stimulus Packages

In 2008, the Bush Administration handed out a slew of economic stimulus packages.

Under President George Bush’s administration, the Federal government gave

$29 billion to bail out Bear Stearns,

$178 billion to American taxpayers in the form of economic stimulus checks,

$300 billion to bail out American homeowners,

$200 billion to bail out Fannie Mae and Freddie Mac,

$150 billion to bailout AIG, and

$700 billion to bail out banks (TARP).

Total Bush Administration Bailout – $1.557 trillion dollars i.e. $1 trillion and $557 billion dollars.

Timelines Of The Bush Economic Stimulus Packages

Following is a timeline of the economic stimulus packages, in chronological order.

March 2008 – $29 Billion Stimulus Package – Wall Street Bailout

The Federal Reserve stepped in to prevent the collapse of Bear Stearns (one of the world’s largest investment banks and brokerage firms) by guaranteeing $29 billion worth of potential losses in its battered portfolio. This provided enough economic stimulus for JP Morgan Chase to take over the beleaguered firm.

May 2008 – $178 Billion Stimulus Package – Average American Bailout

The U.S. Treasury provided an economic stimulus package to American taxpayers in the form of $600 economic stimulus checks for individuals and $1,200 economic stimulus payments for couples.

That cost the government $100 billion, and they threw in another $68 billion in tax breaks for businesses, $8 billion to increase unemployment benefits from 26 weeks to 39 weeks, and a $4 billion economic stimulus package to be doled out to states and local municipalities to buy and rehab foreclosed properties.

July 2008 – $300 Billion Stimulus Package – Homeowners Bailout

The Bush Administration committed $300 billion for 30-year fixed rate mortgages for at-risk borrowers, as well as tax credits for first-time homebuyers, who could be eligible to receive up to a $7,500 tax credit.

September 2008 – $200 Billion Stimulus Package – Fannie Mae and Freddie Mac Bailout

Fannie Mae and Freddie Mac (privately owned mortgage companies that are backed by the federal government) were about to fail, due to declining house prices and rising foreclosures.

The Bush Administration stepped in with a $200 billion economic stimulus package and placed Fannie Mae and Freddie Mac and their $5 trillion in home loans in “temporary conservatorship,” to be supervised by the Federal Housing Finance AgeSeptember 2008 – $50 Billion Stimulus Package To Guarantee Money Market Funds

When the economic crisis reached a crescendo, Americans began to pull their money out of money market funds – historically considered to be the safest investment. To stop the bloodshed, the U.S. Treasury agreed to guarantee up to $50 billion, for up to a year.

September 2008 – $25 Billion Stimulus Package – Automakers Bailout

In an attempt to stave off bankruptcies for the “Big 3 automakers,” the Bush Administration gave General Motors, Ford, and Chrysler $25 billion in low-interest loans.

September – November 2008 – $150 Billion Stimulus Package – AIG Bailout

With the world’s largest insurance company in dire straits and 74 million clients at risk, the American government chipped in and gave AIG (American Insurance Group) $150 billion in a stimulus package that included: loans, purchase of toxic assets, and purchase of preferred shares.

October 2008 – $700 Billion Stimulus Package – Banks Bailout

The Bush Administration, under the umbrella of the U.S. Treasury, committed $700 billion in economic stimulus money under TARP (Troubled Asset Relief Program). By many accounts, if this economic stimulus money hadn’t been injected, credit between banks would have frozen overnight, and not only the American economy, but also the global economy, would have seized up.

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Is The Economic Stimulus Package Working?

“Is the economic stimulus package working” seems to be the question on most people’s minds.

But which economic stimulus package are you talking about?

Bear Sterns was taken over by JP Morgan Chase, so maybe that $29 billion economic stimulus plan worked.

We all got our economic stimulus checks in 2008, but we didn’t necessarily put them back into the economy, so that $178 billion might not have been well-spent.

The $300 billion mortgage stimulus, “Hope For Homeowners,” awarded in July 2008 didn’t work very well either, because few people took an interest in the program. While proponents of this particular economic stimulus package estimated that 400,000 homeowners could be helped over a three-year period, in the first month, only 111 had applied.

The $200 billion economic stimulus handout to Fannie Mae and Freddie Mac, the mortgage giants, stabilized them enough to prevent collapse.

The $50 billion economic stimulus to stabilize money market funds might have averted a disaster.

The $150 billion doled out to AIG, the insurance giant, prevented their closure, but must not have completely solved the problem since AIG came back for $30 billion more less than six months later, even as they were awarding $165 million in bonuses to their top executives.

The $25 billion given to the Big 3 automakers, Chrysler, Ford, and GM, allowed them to live to see another day, but they remain on the brink of disaster.

The $700 billion bank bailout, given in extreme haste in October 2008, might have kept the banks functioning, but no one really knows where that money went or what was done with it, so it’s hard to judge whether TARP is working.

$700 Billion Bush Stimulus

The $700 billion Troubled Asset Relief Program, (TARP), given out by the George Bush Administration in October 2008. No one can seem to track down any details on this. The money was given to banks with the goal that they would lend it to people. They didn’t seem to do that, but no accountability was written into the hastily concocted plan, which seems to have been concocted in a matter of days, in a “cocktail napkin” format.

And that was just the economic stimulus packages of 2008.

Bush Administration Bank Bailouts

July 23, 2009

Source: http://www.stimuluspackagedetails.com/bush.html – Thanks.

Bush Stimulus Packages

In 2008, the Bush Administration handed out a slew of economic stimulus packages.

Under President George Bush’s administration, the Federal government gave

$29 billion to bail out Bear Stearns,

$178 billion to American taxpayers in the form of economic stimulus checks,

$300 billion to bail out American homeowners,

$200 billion to bail out Fannie Mae and Freddie Mac,

$150 billion to bailout AIG, and

$700 billion to bail out banks (TARP).

Total Bush Administration Bailout – $1.557 trillion dollars i.e. $1 trillion and $557 billion dollars.

Timelines Of The Bush Economic Stimulus Packages
Following is a timeline of the economic stimulus packages, in chronological order.

March 2008
$29 Billion Stimulus Package – Wall Street Bailout
The Federal Reserve stepped in to prevent the collapse of Bear Stearns (one of the world’s largest investment banks and brokerage firms) by guaranteeing $29 billion worth of potential losses in its battered portfolio. This provided enough economic stimulus for JP Morgan Chase to take over the beleaguered firm.

May 2008
$178 Billion Stimulus Package – Average American Bailout
The U.S. Treasury provided an economic stimulus package to American taxpayers in the form of $600 economic stimulus checks for individuals and $1,200 economic stimulus payments for couples. That cost the government $100 billion, and they threw in another $68 billion in tax breaks for businesses, $8 billion to increase unemployment benefits from 26 weeks to 39 weeks, and a $4 billion economic stimulus package to be doled out to states and local municipalities to buy and rehab foreclosed properties.

July 2008
$300 Billion Stimulus Package – Homeowners Bailout
The Bush Administration committed $300 billion for 30-year fixed rate mortgages for at-risk borrowers, as well as tax credits for first-time homebuyers, who could be eligible to receive up to a $7,500 tax credit.

September 2008
$200 Billion Stimulus Package – Fannie Mae and Freddie Mac Bailout
Fannie Mae and Freddie Mac (privately owned mortgage companies that are backed by the federal government) were about to fail, due to declining house prices and rising foreclosures. The Bush Administration stepped in with a $200 billion economic stimulus package and placed Fannie Mae and Freddie Mac and their $5 trillion in home loans in “temporary conservatorship,” to be supervised by the Federal Housing Finance Agency.

September 2008
$50 Billion Stimulus Package To Guarantee Money Market Funds
When the economic crisis reached a crescendo, Americans began to pull their money out of money market funds – historically considered to be the safest investment. To stop the bloodshed, the U.S. Treasury agreed to guarantee up to $50 billion, for up to a year.

September 2008
$25 Billion Stimulus Package – Automakers Bailout
In an attempt to stave off bankruptcies for the “Big 3 automakers,” the Bush Administration gave General Motors, Ford, and Chrysler $25 billion in low-interest loans.

September – November 2008
$150 Billion Stimulus Package – AIG Bailout
With the world’s largest insurance company in dire straits and 74 million clients at risk, the American government chipped in and gave AIG (American Insurance Group) $150 billion in a stimulus package that included: loans, purchase of toxic assets, and purchase of preferred shares.

October 2008
$700 Billion Stimulus Package – Banks Bailout
The Bush Administration, under the umbrella of the U.S. Treasury, committed $700 billion in economic stimulus money under TARP (Troubled Asset Relief Program). By many accounts, if this economic stimulus money hadn’t been injected, credit between banks would have frozen overnight, and not only the American economy, but also the global economy, would have seized up.

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.

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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.

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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.

Bush Stimulus Package

July 23, 2009

By Padmini Arhant

Presentation of Chronological Stimulus Package Details:

From: Stimulus Package Details

Source: http://www.stimuluspackagedetails.com/bush.html – Thanks.

Bush Stimulus Packages

In 2008, the Bush Administration handed out a slew of economic stimulus packages.

Under President George Bush’s administration, the Federal government gave

$29 billion to bail out Bear Stearns,
$178 billion to American taxpayers in the form of economic stimulus checks,
$300 billion to bail out American homeowners,
$200 billion to bail out Fannie Mae and Freddie Mac,
$150 billion to bailout AIG, and
$700 billion to bail out banks (TARP).

Total Bush Administration Bailout – $1.557 trillion dollars i.e. $1 trillion and $557 billion dollars.

Timelines Of The Bush Economic Stimulus Packages

Following is a timeline of the economic stimulus packages, in chronological order.

March 2008 – $29 Billion Stimulus Package – Wall Street Bailout

The Federal Reserve stepped in to prevent the collapse of Bear Stearns (one of the world’s largest investment banks and brokerage firms) by guaranteeing $29 billion worth of potential losses in its battered portfolio. This provided enough economic stimulus for JP Morgan Chase to take over the beleaguered firm.

May 2008 – $178 Billion Stimulus Package – Average American Bailout

The U.S. Treasury provided an economic stimulus package to American taxpayers in the form of $600 economic stimulus checks for individuals and $1,200 economic stimulus payments for couples. That cost the government $100 billion, and they threw in another $68 billion in tax breaks for businesses, $8 billion to increase unemployment benefits from 26 weeks to 39 weeks, and a $4 billion economic stimulus package to be doled out to states and local municipalities to buy and rehab foreclosed properties.

July 2008 – $300 Billion Stimulus Package – Homeowners Bailout

The Bush Administration committed $300 billion for 30-year fixed rate mortgages for at-risk borrowers, as well as tax credits for first-time homebuyers, who could be eligible to receive up to a $7,500 tax credit.

September 2008 – $200 Billion Stimulus Package – Fannie Mae and Freddie Mac Bailout

Fannie Mae and Freddie Mac (privately owned mortgage companies that are backed by the federal government) were about to fail, due to declining house prices and rising foreclosures. The Bush Administration stepped in with a $200 billion economic stimulus package and placed Fannie Mae and Freddie Mac and their $5 trillion in home loans in “temporary conservatorship,” to be supervised by the Federal Housing Finance Agency.

September 2008 – $50 Billion Stimulus Package To Guarantee Money Market Funds

When the economic crisis reached a crescendo, Americans began to pull their money out of money market funds – historically considered to be the safest investment. To stop the bloodshed, the U.S. Treasury agreed to guarantee up to $50 billion, for up to a year.

September 2008 – $25 Billion Stimulus Package – Automakers Bailout

In an attempt to stave off bankruptcies for the “Big 3 automakers,” the Bush Administration gave General Motors, Ford, and Chrysler $25 billion in low-interest loans.

September – November 2008 – $150 Billion Stimulus Package – AIG Bailout

With the world’s largest insurance company in dire straits and 74 million clients at risk, the American government chipped in and gave AIG (American Insurance Group) $150 billion in a stimulus package that included: loans, purchase of toxic assets, and purchase of preferred shares.

October 2008 – $700 Billion Stimulus Package – Banks Bailout

The Bush Administration, under the umbrella of the U.S. Treasury, committed $700 billion in economic stimulus money under TARP (Troubled Asset Relief Program). By many accounts, if this economic stimulus money hadn’t been injected, credit between banks would have frozen overnight, and not only the American economy, but also the global economy, would have seized up.

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Is The Economic Stimulus Package Working?

“Is the economic stimulus package working” seems to be the question on most people’s minds.

But which economic stimulus package are you talking about?

Bear Sterns was taken over by JP Morgan Chase, so maybe that $29 billion economic stimulus plan worked.

We all got our economic stimulus checks in 2008, but we didn’t necessarily put them back into the economy, so that $178 billion might not have been well-spent.

The $300 billion mortgage stimulus, “Hope For Homeowners,” awarded in July 2008 didn’t work very well either, because few people took an interest in the program. While proponents of this particular economic stimulus package estimated that 400,000 homeowners could be helped over a three-year period, in the first month, only 111 had applied.

The $200 billion economic stimulus handout to Fannie Mae and Freddie Mac, the mortgage giants, stabilized them enough to prevent collapse.

The $50 billion economic stimulus to stabilize money market funds might have averted a disaster.

The $150 billion doled out to AIG, the insurance giant, prevented their closure, but must not have completely solved the problem since AIG came back for $30 billion more less than six months later, even as they were awarding $165 million in bonuses to their top executives.

The $25 billion given to the Big 3 automakers, Chrysler, Ford, and GM, allowed them to live to see another day, but they remain on the brink of disaster.

The $700 billion bank bailout, given in extreme haste in October 2008, might have kept the banks functioning, but no one really knows where that money went or what was done with it, so it’s hard to judge whether TARP is working.

And that was just the economic stimulus packages of 2008.

National Unemployment and the Economic Status

July 23, 2009

By Padmini Arhant

The ravenous economy has absorbed about $3.7 trillion dollars via bailouts and stimulus plans, (please refer to individual stimulus package topics for breakdown) yet the nation’s jobless rate rising like a tidal wave rather than settling along the shores. Several arguments mounting regarding the precarious job situation across the nation with some fifteen states like California, Michigan, Indiana, Ohio and others experiencing double digit in job losses accumulated over a period of time.

Not surprisingly, criticisms with an ominous prediction such as a possible return of the ‘Great Depression’ from various political and economic factions pouring against the current administration’s level of action and apparent inaction in averting the precipitous decline of the job market.

The irony being, President Obama’s opponents and fierce critics expressing deep concerns over the present generation’s children and grandchildren burdened with the burgeoning multi-trillion dollars national deficit from the ‘supposedly’ bizarre and revolutionary health care reform.

Unfortunately, the pervasive selective memory among the cynics forbids anyone from reminding the junkyard legacy by the previous administration. Nevertheless, it’s important to revisit the situation in order to find a pragmatic and an effective cure for the epidemic unlike a band-aid treatment tactic by the prior administration.

As detailed earlier on many occasions, the wild adventures in the past eight years eroded the fundamentals of the capitalist system. Immediately following the 9/11 attacks, the widespread panic about the United States economic and national security surely had an impact on the American investments ranging from housing to stock market including the exodus of some expatriates selling homes combined with the withdrawal of their investments.

The Bush-Cheney administration laid out the extravagant scheme to trump the situation with yet another war by invading Iraq when the mission in Afghanistan had barely begun. Conservative ideology dictates that wars promote prosperity. Actually, the notion might not be far-fetched because wars are highly beneficial to the nexus group gambling with others’ life and nation’s wealth.

When the administration inheriting a surplus economy engaged in a dubious agenda at the most improper and inconvenient time, the market conditions in 2002 and onwards became more volatile due to enormous speculations surrounding the United States affordability to wage another war.

The Bush-Cheney administration sailed through the storm with false assurances and blatant lies that Iraq war would be self-funded through oil revenues expected to be reaped exclusively by the United States in return for the establishment of democracy.

One must also not forget the administrations’ prophesy on the premature valentine’s day celebration by the cheering Iraqis handing out rose bouquets to the U.S. occupying forces at the expense of their blood and national treasury.

The excessive borrowing commenced at the dawn of the Iraq war with the fiscal conservatives now objecting to their constituents’ health care benefits, then turning a blind eye and signing a blank check to an unarguably a corrupt administration.

Funding two simultaneous wars converted the national surplus to national deficit adversely affecting the Treasury Notes and subsequently the U.S. currency in the international market. In the backdrop of the weakening Bond market, the stock market performance accelerated with investors’ confidence in the growth of different sectors specifically the oil and defense stocks due to the on-going wars, technology sector and the financial sector with hyperbolic balance sheets.

Above all, during that time the Federal Reserve and the Treasury’s overly cautious inflationary measure by reducing the interest rates beyond market conditions and unleashing the free market from necessary regulations in an utter conflict of interest essentially provided a fertile ground for the financial sector to exploit the unique opportunity in the lending activity.

In addition, the conglomerate like AIG and major investment banks extending towards the commercial bank’s activities risking long-term investments for short-term gains induced further competition for the traditional banking sector adopting strategies detrimental to the key components of the economy viz. the housing market, retail and commercial lending.

The financial sector’s unethical and unscrupulous practices in every aspect of lending targeting the nerve of the economic system i.e. the consumer, exacerbated the economic recession.

From the notorious sub-prime mortgages in the housing market now appropriately defined as ‘toxic assets’ bundled into the mortgage backed securities exchanged through international trading, to teaser rates offered on credit card later escalating to atrocious interest rates exceeding market affordability…are primarily responsible for the chronic ailments of the current real estate and the liquidity crisis.

Unequivocally the present woes of the economy are attributable to the overwhelming greed by the financial sector and the defiance for any rule of law until date. As clarified by President Obama during the press conference on date, the financial regulatory reforms are in order.

Since some prominent economists have been recently pushing for more stimulus over and above the total $3.7 trillion dollars, it’s necessary to obtain the facts and details on earlier investments to evaluate the methods applied as a result of the negative economic growth and dismal unemployment rate.

Please refer to stimulus package details followed by careful analysis in the subsequent segments.

Meanwhile, it’s imperative and incumbent on all bailout recipients and the previous administration officials regardless of hierarchy to come forward, testify under oath to Congress as the representatives of the American electorate, and explain exactly where and how the trillions of dollars have been invested.

Is it a coincidence that Goldman Sachs after being assisted by the former Treasury Secretary Henry Paulson in gobbling Bear Stearns and Lehman Brothers, emerges with a bumper profit rewarding its every employee with a despicable amount $700,000 bonus the past week ? – Absolutely not.

It’s about time the criminals of the financial world are brought to justice in order to avoid a twenty first century revolution in the world’s modern democracy.

Congress must act in the interest of the people and abide by the constitutional rule of law with an honest and thorough investigation of the massive bailouts carried out at the expense of the hard working American taxpayers.

Thank you.

Padmini Arhant

Health Care Revelation

July 21, 2009

By Padmini Arhant

The special interests through their government talking heads i.e. the legislators and specific media are engaged in the preposterous propaganda convincing the naïve majority that are insured to claim utter satisfaction with the status quo, when in reality those who are currently insured are ‘safe’ in the same reference to their stock market holdings.

The truth of the matter is – in the highly volatile job market, the employers ripped off by the exploitative health industry through exorbitant premiums will not be able to sustain the health care costs and soon forced to withdraw the contributions to maintain overheads. Then the crisis will transform to a personal level for all those in agreement with the deceptive misguided policies of the self-serving legislators obligatory to their sponsors’ prosperity.

United States cannot possibly procrastinate on this health care issue any longer as the economy is drained from corporate greed, unscrupulous practices, and gross abuse of legislative power solemnly pledged to the special interests directly responsible for the economic ruin of the state, country and the entire world. The narcissistic policies of the authorities in the State of California with the Republican Governor and the minority are a classic example in the recent declaration of ‘closing the deal’ on the budget crisis.

As for the legislators contemplating on the issue of meeting the President’s deadline, it is a test of their courage, commitment and competence in the health care battle between the people i.e. the constituents holding the key to the power in a democracy, vs. the special interests, also dependent on the people as the consumers in a capitalist society.

The special interests tactics is to stall the legislature through their paid employees i.e. legislators objecting to the reform by detecting flaws on unrelated pretexts given the past triumphant record in extinguishing the national health care scheme.

Citizens across the nation on their part must vigorously campaign by calling the local representatives and Senators to act immediately by embracing the President’s public option policy dedicated to revive the economy and the job market with a guaranteed low cost yet quality insurance for every citizen.

By doing so, the citizens can free themselves and relieve the future generation from the existing corporate bondage essentially liable for the crippling economy.

Regardless, the people will prevail because without consumers and constituents’ vote the ‘power’ is powerless despite the substantial wealth investment in the legislative votes.

Thank you.

Padmini Arhant

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