Government looks to new stimulus package to spark economy
November 24, 2008 by admin
Members of Congress are pledging a new stimulus plan to arrive in Washington the day President Elect Obama is inaugurated. There is growing sentiment that the government is likely to greatly expand on tax cuts and a stimulus packaged aimed to shore up the local and state government systems through infrastructure spending. It is also widely believed that the existing TARP program, which is now aimed at helping to unlock the secondary lending market for student loans, credit card loans, auto loans and other consumer loans is likely to grow in excess of one trillion dollars. The government has continue to add money and funds in the TARP program at banks that are feared to have toxic balance sheets such as Citigroup, hoping the improved balance sheets will make lending easier to consumers.
To date the money added to banks via the TARP program has done little to ease the credit markets or make lending more affordable. As the global markets continue to decline the government is likely to take a full hands on approach in attempting to stimulate growth and spending. The new stimulus package could be passed into law within the next sixty days and help provide a boost to the U.S. economy by the second quarter of 2009.