[lbo-talk] TARP & stimulus spending

Max Sawicky sawicky at verizon.net
Tue Dec 8 10:19:35 PST 2009


Excellent!!!

Since TARP was effectively a line of credit, and Treasury
> has not drawn down the unused funds, that allows Congress some room to spend
> money on a new bill without increasing the projected deficit for next year.
> Next year's deficit projections already assume that Treasury would spend the
> entire $700 billion. If Treasury spends less, that means next year's deficit
> will be less than expected. But if Treasury spends less, and Congress spends
> more – by the same amount – the deficit projection figure stays flat. Got
> it?

Project next year's deficit at $3 trillion, then laissez les bon temps rouler.



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