The CBO Quietly Downgrades Obama's $825 Bil Stimulus

Investors.com ^ | 11.23.2011 | ??

[blueyon]

Recovery: After nearly all the stimulus money has been spent, the Congressional Budget Office now admits it cost more than advertised, did less to boost growth and will hurt the economy in the long run.

In its latest quarterly report on the economic effects of the Obama stimulus, the CBO sharply lowered its "worst case" scenario while trimming many of its upper-bound estimates for stimulus-fueled growth and employment.

The new report finds, for example, that the stimulus may have added as little as 0.7% to GDP growth in 2010 — when spending was at its peak — and created as few as 700,000 new jobs.

Both are down significantly from the CBO's previous worst-case scenario.

The report also lowered the best-case estimate for added growth in 2010 to 4.1% from 4.2%.

In addition, the CBO says the extra infrastructure money didn't boost growth as much as it previously claimed, because states reacted by spending less out of their own budgets on highways.

[blueyon]

Just in case you missed it.............Proof it was a failure

[tobyhill]

I missed it because this is the first publication I've seen of it.

[aces]

crud, we knew that, we are being attacked from the white house..

[DB]

Regarding infrastructure they spent the money redoing things that didn’t actually produce anything afterwords. Repaving a road that’s already paved doesn’t produce any significant return on “investment”...

[LibLieSlayer]

CHUMP CHANGE... LET'S REPORT ON THE 15 TRILLION DOLLARS THE FED RESERVE POURED INTO CORRUPT EUROPEAN BANKS DURING THIS TIME... THAT WAS REPORTED THIS WEEK... WHAT'S THAT YOU HEAR? I DO BELIEVE IT IS CRICKETS. IT WAS DONE IN SECRET... CONGRESS WAS KEPT IN THE DARK... OBAMA KNEW... WHAT CHA GONNA DO?

We will never earn or grow our way out of this debt and unelected and unconstitutional bureaucrats sold us out to the world socialists. When do we start over?

LLS

[LibLieSlayer]

Oh... and it was reported that no money has been paid back to the fed and that the loans that were made (some were grants) were 0% interest loans.

LLS

[harpu]

Not bad...700,000 jobs at 1.179 million per job.

[Roccus]

Repaving a road that’s already paved doesn’t produce any significant return on “investment”...

At least you got repaved roads. Around my area we got repaved shoulders.

[sickoflibs]

RE "Recovery: After nearly all the stimulus money has been spent, the Congressional Budget Office now admits it cost more than advertised, did less to boost growth and will hurt the economy in the long run. In its latest quarterly report on the economic effects of the Obama stimulus, the CBO sharply lowered its "worst case" scenario while trimming many of its upper-bound estimates for stimulus-fueled growth and employment. The new report finds, for example, that the stimulus may have added as little as 0.7% to GDP growth in 2010 — when spending was at its peak — and created as few as 700,000 new jobs."

Eight hundred billion $$$ for 700,000 jobs is over 1 M $$ per job. So time to tax the rich?

[Liz]

REPORTED THIS WEEK----THE FED RESERVE POURED ABOUT $15 TRILLION INTO CORRUPT EUROPEAN BANKS......DONE IN SECRET... CONGRESS WAS KEPT IN THE DARK... OBAMA KNEW...

MUST READ What the so-called "collapse" of the banking system wrought:

Dec 21, 2009
Behind The Real Size of the Bailout; A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street
SOURCE motherjones.com

The price tag for the Wall Street bailout is often put at $700 billion—the size of the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside money to bail out financial firms and inject money into the markets.

To get a sense of the size of the real $14 trillion bailout, see our chart at web site. Below, a guide to the pieces of the puzzle:

Treasury Department bailout programs
(Remember that Obama's Treasury Dept was controlled by his then-COS Rahm Emanuel---a G/S lobbyist in the WH)

Money Market Mutual Fund: In September 2008, the Treasury announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].

Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].

TARP: As part of the Troubled Asset Relief Program, the Treasury has made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid.

Government-sponsored enterprise (GSE) stock purchase: The Treasury has bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets."

GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion ---SNIP---.

LONG READ---go to web site to read more and checkout the shocking charts.

SOURCE http://motherjones.com/politics/2009/12/behind-real-size-bailout

[ding_dong_daddy_from_dumas]

And lo and behold, if you create a model that predicts the law will create jobs, and then you rerun a mild variation of that model a few years later using updated figures about what money was actually spent, it still reports that the stimulus created jobs. But there’s no counting here, no real-world attempt to assess the reality of the stimulus—just a model that assumes that stimulus spending will create jobs and therefore reports that stimulus spending has in fact created jobs. As CBO director Douglas Elmendorf confirmed on the record last year in response to a question, “if the stimulus bill did not do what it was originally forecast to do, then that would not have been detected by the subsequent analysis.”

[Georgia Girl 2]

Anybody on FR could have clued the CBO in about this last year.

[DoughtyOne]

1. government forces bad loans
2. banks and lending institutions develop huge amounts of bad paper
3. these institutions find a way to spread this paper out rather than shoulder all the burden when things eventually blew up
4. thing blew up
5. the federal government demonized the banks and lending institutions
6. the federal government stepped in to prevent some of these institutions from going under
7. the federal reserve spread trillions around to stop foreign entities that had bought bad paper, from going under.

Here’s who to blame...

1. a number of presidential administrations
2. a number of evil congress and senate critters
3. some bad players in the banking and lending and wall street community

I have no problem spreading the blame around, but it was our federal government that let it be known that the system was going to play fast and loose with the rules, so that people who didn’t qualify could get a home.

Then corruption spread like wildfire. Who knew?

BTW, it still is. We have papered over the same bad loans, leaving many of them in place. They will collapse at some point. And then we do this all again, and the banks and lending institutions and wall street will get the full blame.

It must be nice to be able to break all the rules and be above prosecution. No, I’m not talking about bad investment players. I’m talking about our elected representatives, who are using us for toilet paper.

[Marine_Uncle]

Things have gotten far out of hand to put it mildly.

[adk]

Surely you must understand that the entire $800 billion was not spent merely on payroll. Equipment, materials, these don’t come out of thin air.

[sickoflibs]

RE :”Surely you must understand that the entire $800 billion was not spent merely on payroll. Equipment, materials, these don’t come out of thin air.”

And lots of other stuff like unemployment comp.

Surely you understand they sold it as an emergency shovel ready jobs bill so they deserve what they get. Did they give Bush a break on WMDs?

[SunkenCiv]

Thanks sickoflibs.