The following is a wonkish discussion of one aspect of the White House budget. The President’s budget will never see the light of day, but I think it is instructive to look at this component of the plan, and expose it for what it is – A fraud.
The following is a wonkish discussion of one aspect of the White House budget. The President's budget will never see the light of day, but I think it is instructive to look at this component of the plan, and expose it for what it is - A fraud.
Michael Johnston submits:State Street has partnered with Nuveen Investments to launch the SPDR Nuveen Barclays Capital Build America Bond ETF (BABS), the second ETF offering exposure to a corner of the bond market created as a result of the recent recession.
New paper "Macro Fiscal Policy in Economic Unions: States as Agents" by Gerald Carlino, and Robert P. Inman (NBER Working Paper No. 19559 published October 2013) argues that ARRA (the American Recovery and Reinvestment Act) was the US government’s fiscal policy (as opposed to monetary policy QEs programmes) response to the Great Recession. "An important component of ARRA’s $796 billion proposed budget was $318 billion in fiscal assistance to state and local governments."The study "reaches three conclusions.
There was a $1 trillion gap at the end of fiscal year 2008 between the $2.35 trillion states had set aside to pay for employees’ retirement benefits and the $3.35 trillion price tag of those promises, according to a new report released by the Pew Center on the States. The shortfall, which will have to be paid over the next 30 years by state and local governments, amounts to more than $8,800 for every household in the United States.
Brian Rezny submits: Last week, scheduled municipal bond sales totaled $15.4 billion -- the most in seven years, according to Bloomberg. And why? Because local and state governments are racing the clock to take advantage of the Build America Bonds program. The plan, which provides a 35% federal subsidy on interest costs, is set to expire at the end of the year (issuance through the end of October totaled over $150 billion -- around 25% of municipal bond sales).
Even as Congress remains at a budget impasse, President Barack Obama continues to tout his plans to increase federal investment in the nation's ailing infrastructure, a $50 billion initiative that the White House claims will spur job creation and economic growth.