Rajiv Baheti Baheti 1 Dr. Carol Scotese ECON 302 14 April 2011 Fiscal Policy Response to the Ongoing Recession TARP, or the Troubled Asset Relief Program, is a government program created for the establishment and management of a Treasury fund in order to curb the ongoing crisis. Its intention at first was to preserve the US financial sector and avoid future structural collapse by allowing the Department of the Treasury to purchase so-called “troubled assets”. Instead, a different approach was taken once the program was put into place. TARP gives purchasing power of $700 billion to the U.S Treasury to buy up mortgage backed securities (MBS) from institutions across the country, in an attempt to strengthen market stability, to
If she were to move to another state where her marginal state rate would be 10 percent, would her choice be any different? Assume that Dana itemizes deductions. When the state rate is 5 percent, Dana would achieve the following returns from the Treasury bond or the corporate bond: The Treasury bond yields $1,125 or $30,000 x [.05 x (1-.25)] after tax. The corporate bond yields $1,282.50 or $30,000 x [.06 x (1 - .25 - .05(1-.25))] after tax. Note that the actual state rate is reduced by 25% to allow for the deductibility of state income taxes on the federal income tax return.
Hence, the SEC asked Kodiak Energy to perform a restatement under item 4.02 of the 8k disclosure rules. This item covers non-reliance on a previously filed financial statement and the related audit report. In accordance with the SEC’s request, Kodiak Energy put in a notification of late filing for their 2008 fiscal report and corrected for the transaction errors in March 2009. After the error adjustments, the restated financial reports showed an overall increase of 3.5 million dollars in the reported acquisition cost and related issuance of common shares. After the fiasco surrounding the acquisition of the Thunder River assets, shareholders lost faith in Kodiak Energy.
Unlimited access to bailout funds through 2012. So far, Treasury has provided $60 billion of capital to Fannie and $51 billion to Freddie. Some Republicans are angry the administration is expanding the potential size of the bailout without having a plan for eventually ending the federal government's role in the companies. The companies disclosed new packages that will pay Fannie Chief Executive Officer and Freddie CEO as much as $6 million a year, including bonuses. The pay deals also drew fire.
The author of this article, Jeannine Aversa, is stating that key economic indicators point to the likelihood of a recession. Aversa supports her thoughts by noting the real GDP; “crawled at a 1.3 percent pace in the opening quarter of 2007…even weaker than the sluggish 2.5 percent rate in the closing quarter of last year.” The author suggests the main cause of the economic slowdown is due to “the housing slump.” Consumer expenditures are driving the economy, but Aversa worries about a “fallout from risky mortgages and rising energy prices.” Uncertainty of the Feds actions concerning the interest rates is leading to lower investment spending. The author also states that the Feds decision on raising or lowering the interest is due to the
Exercise Chapter 33 Student: ___________________________________________________________________________ 1. If the Congress passes legislation to decrease government spending to control demand-pull inflation, then this would be an example of a(n): A. Automatic stabilizers B. Expansionary fiscal policy C. Contractionary fiscal policy D. Nondiscretionary fiscal policy 2. An expansionary fiscal policy can be illustrated by a(n): A. Change in the price level B.
This report is to examine and analyze the Australian Federal Budget for 2011. It will examine the overview of the budget including increase of spending and budget cuts, benefits and the disadvantages of this budget. This year’s budget was quite different to the last couple. This one is about budgets cuts and getting back to surplus as the deficit of 27 billion dollars and it is predicted to be in surplus by 1.7 billion dollars by 2013 although that figure has come under scrutiny if would actually get that figure. Over the last couple of years it has been about spending which would in turn stimulate the economy by more jobs and consumer spending such as the $900 that was given out to most Australians which did very well especially to the struggling
It’s not sure how much more. Most Americans truly want to know what the solution will be regarding the fiscal cliffs. Everybody will be affected by the fiscal cliff. It will be a temporary fix to the nation's debt crisis. Politicians in Washington were supposed to work on a permanent plan over the past year and a half.
Bill Mckibben talks about the consequences of economic growth in chapter one “after growth” of his book “Deep economy”. He discusses three major problems that economy brings as it grows, which are income inequality, environment destruction, and happiness. He says these three objection mesh suggest that people will no longer be able to act wisely, either in our individual lives or in public life. Mckibben starts off the chapter by discussing the problem of income inequality. He shows that the real income of the bottom 90 percent of American taxpayers eanred $27,060 in 1979, $25,646 in 2005, which tells us that though our economy has been growing, most of us have relatively little to show for it.
If Head Start programs received their full allocated monies from the ACF’s proposed 2009 budget increase, then programs would still operate in a negative stage by $923 million. This would cause a funding cut of 12% at the end of the budget period. This budget cut does not take into consideration the additional millions of dollars needed to operate according to the new requirements approved in December 2007. Allocated amounts for collaborative grants during the 2007 fiscal year level; has been allocated to be at least 2.5%, but no more than 3% for training and technical assistance. 20% of this allocation is to be used for providing assistance to Early Head Start