FOMC members were split on balancing the potential need for more monetary stimulus against inflation fears, with most members viewing current inflation levels as temporary and driven by energy prices. The minutes sum up the debate on additional easing:
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stimulus
Apparently the recent events in Japan were just the sort of ‘excuse’ Ben Bernake, et al have been waiting for. Continue reading »
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.
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]
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