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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Written by Padmini Arhant · Filed Under Business, Economy 

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