It was a banner day to hear the increasingly tired arguments for and against the Fed’s stimulus policies from the horses’ mouths in some of the U.S.’s more scenic locales.
Apparently the recent events in Japan were just the sort of ‘excuse’ Ben Bernake, et al have been waiting for. Read more »
Happy one-year birthday Stimulus! It’s been a year since Obama signed the $787 billion American Recovery and Reinvestment Act, and what better way to celebrate than to learn that banks will need an additional $221 billion of capital if all proposed financial regulations are implemented?
“The cumulative impact of all the proposed regulation suggests that there is a real risk that we may move from a system that was under regulated to one that is over regulated and that that could cause a significant increase in lending costs and a negative impact on the economy,” Nick O’Donohue, head of research at JPMorgan, said in a research note.
The recession may be over, but that doesn’t mean governments should stop pouring trillions into their economies.
A pair of policymakers from both sides of the Atlantic want to keep those stimulus dollars (and euros and pounds) rolling. James Bullard, the St. Louis Fed president who’s had an awful lot to say these days, wants to see the Fed’s ability to buy mortgage-backed securities and bonds continue. IMF chief Dominique Strauss-Kahn agrees that it is way too early to give up on stimulus policies.
From the stimulus plan creators that brought you a multi million dollar subsidy for toy arrows, the Obama administration is now worried about losing up to $50 billion of the $787 billion stimulus to fraud. The problem is bad enough that the Feds are on the case.
Earlier this month, FBI Director Robert Mueller warned the nation to brace for a potential crime wave involving fraud and corruption related to the economic stimulus package. “These funds are inherently vulnerable to bribery, fraud, conflicts of interest, and collusion. There is an old adage, that where there is money to be made, fraud is not far behind, like bees to honey,” Mueller said.
But the Commander in Chief is on the problem.
“At a time when everybody is tightening their belts, the last thing the American people want to see is that any of this money is being wasted,” Obama said.
Fraudsters eye huge stimulus pie, consultant says [Marketwatch]