Budget stashes billions 'just in case'
President Obama unveils his budget today to Congress -- a 10-year spending plan which includes $250 billion for the reeling banking system, "just in case." Dan Grech reports the current bailout doesn't cover everything.
President Barack Obama makes a statement from the Diplomatic Room of the White House -- February 26, 2009 (Jim Watson/AFP/Getty Images)
More on Fed. Budget/Govt. Spending, America's Financial Crisis
TEXT OF STORY
Renita Jablonski: President Obama unveils his budget today to Congress. An expensive health care package and tax increases on the wealthy are catching headlines. But also tucked into the 10-year spending plan is $250 billion for the reeling banking system, just in case. Marketplace's Dan Grech reports.
Dan Grech: Four months back, the Bush administration passed a $700 billion bank bailout known as the TARP.
Real estate analyst Jack McCabe says it will take trillions to get the credit market going again:
Jack McCabe: We literally have over a $2 trillion shortfall in spending over the last few years, and the $700 billion only replaces about a third of what's necessary.
Obama's proposed budget sets aside another quarter-trillion dollars for the banks. The president is calling it a placeholder that he may not have to use.
But McCabe says down the road, even more funds will have to be set aside:
McCabe: Well, I think the money's always available, because the one thing the government has that the rest of us don't have is a printing press.
McCabe says the bigger hurdle is the willingness of the American people to saddle their grandchildren with debt.
I'm Dan Grech for Marketplace.
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02/26/2009
Fred @ Pa,
It is hardly "stealing" to return tax rates to where they were at the beginning of this decade. When are you Rupkes going to get it? Lower tax rates doing nothing if there is no money being earned; making affordable health care available to everyone LOWERS the cost of health care. You may pay more in higher taxes, but there will be a reduction in health insurance costs, creating a net gain! Far from your hero of the last 8 years, BO is trying to put some sense into government.
From Meadville, PA, 02/26/2009
Mr. Grech:
You state that Obama's plan will "save" $318 billion. Dan, the word is "steal", as in, "Mr. Obama's plan will STEAL $318 billion dollars from those who worked hard to EARN it." We can debate the worthiness of the cause that the money goes to but please don't obfuscate the reality of what's happening here.
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