President-elect Barack Obama's team is considering a plan to boost the recession-hit US economy that could be far larger than previous estimates and might reach $1 trillion over two years, the Wall Street Journal reported on Saturday.
Obama aides, who were considering a half-trillion dollar package two weeks ago, now consider $600 billion over two years "a very low-end estimate," the newspaper said, citing an unidentified person familiar with the matter.
The final size of the stimulus was expected to be significantly higher, possibly between $700 billion and $1 trillion over that period, it said, given the deteriorating state of the U.S. economy.
Officials with Obama's camp have declined to comment on media reports about the size of the boost his administration might seek to give the economy through increased public spending and tax cuts.
Obama is due to take office on January 20.
Battered stock market investors around the world have taken heart from previous indications of how Obama's administration may seek to kickstart growth in the world's largest economy.
Obama has promised he will launch a massive public works program to help lift the U.S. economy out of recession.
The president-elect is likely to be briefed by his aides on the outline of the stimulus plan next week with a view to getting it passed by Congress by the time he is sworn in next month, the Journal said.
Economists have previously said they expect Obama to quickly sign a multi-year spending package that could be worth up to $750 billion, or almost 5 percent of U.S. gross domestic product.
The administration of President George W. Bush has been given authority by Congress to spend up to $700 billion in taxpayer money to rescue the nation's banking system.
The money was originally set aside to buy up toxic mortgage-backed securities but is now being used to recapitalize banks and induce them to lend more freely.
Source; Agencies
Showing posts with label president-elect Barack Obama. Show all posts
Showing posts with label president-elect Barack Obama. Show all posts
Sunday, December 14, 2008
Tuesday, December 9, 2008
Obama urged to appoint a cyber security czar
Report indicates that cyber security a major threat to US and has urged president-elect Barack Obama to appoint a cyber security czar.
Cyber security will pose a major threat to the US during the next administration, a new report has said, urging.
The report, Securing Cyberspace for the 44th Presidency, issued by the Centre for Strategic and International Studies, also urged president-elect Barack Obama to appoint a cyber security czar.
"Cyber security is now a major security problem for the US. Only a comprehensive national security strategy that embraces both the domestic and international aspects of cyber security will make us more secure," said the report.
Criticizing President George W. Bush for relying on the free market to secure the nation's networks, the report accused the Department of Homeland Security of being unable to protect the government from cyber attacks.
"In no other area of national security do we depend on private, voluntary efforts. We believe that cyberspace cannot be secured without regulation," it said.
The report recommended the creation of a White House office - Assistant to the President for Cyberspace - to coordinate responses to cyber threats across domestic, intelligence, military and economic elements of the government. It called for increased funding for research into cyber security.
Cyber security will pose a major threat to the US during the next administration, a new report has said, urging.
The report, Securing Cyberspace for the 44th Presidency, issued by the Centre for Strategic and International Studies, also urged president-elect Barack Obama to appoint a cyber security czar.
"Cyber security is now a major security problem for the US. Only a comprehensive national security strategy that embraces both the domestic and international aspects of cyber security will make us more secure," said the report.
Criticizing President George W. Bush for relying on the free market to secure the nation's networks, the report accused the Department of Homeland Security of being unable to protect the government from cyber attacks.
"In no other area of national security do we depend on private, voluntary efforts. We believe that cyberspace cannot be secured without regulation," it said.
The report recommended the creation of a White House office - Assistant to the President for Cyberspace - to coordinate responses to cyber threats across domestic, intelligence, military and economic elements of the government. It called for increased funding for research into cyber security.
Saturday, November 22, 2008
Citi likely to replace Vikram Pandit as CEO
Citigroup's Board is considering firing its Chief Executive Vikram Pandit, who was appointed as CEO late last year to infuse confidence, as the banking giant finds itself searching for hope all over again.
Replacing Pandit – an enthusiastic defender of the company's existing mix of businesses – is one of the options being considered by Citi executives, along side selling all or part of the company, a public endorsement from the government or a new financial lifeline to stabilise the banking behemoth, after its shares took a sharp plunge this week.
In a series of tense meetings and telephone calls, the executives weighed several options, including whether to replace Citigroup's chief executive Vikram S Pandit or to sell all or part of the company, the New York Times reported.
The paper reported that the company's executives on Friday entered into talks with federal officials about how to stabilise the struggling financial giant.
The report came amidst some analysts saying that infusion of $50 to $100 billion might be needed to bail out the bank.
The course of action, however, remained uncertain on Friday night, the people involved in talks were quoted as saying, and other options may yet emerge. But after a year of gaping losses and an accelerating decline in share price, Citigroup, which has $2 trillion in assets and operations in scores of countries, is running out of time, analysts were quoted by The New York Times as saying.
The paper said, Citigroup's management and some board members held several calls with Henry M Paulson Jr, the Treasury secretary, and with the president of the Federal Reserve of Bank of New York, Timothy E Geithner, who later emerged as President-elect Barack Obama's choice to be Treasury secretary.
Source: PTI
Replacing Pandit – an enthusiastic defender of the company's existing mix of businesses – is one of the options being considered by Citi executives, along side selling all or part of the company, a public endorsement from the government or a new financial lifeline to stabilise the banking behemoth, after its shares took a sharp plunge this week.
In a series of tense meetings and telephone calls, the executives weighed several options, including whether to replace Citigroup's chief executive Vikram S Pandit or to sell all or part of the company, the New York Times reported.
The paper reported that the company's executives on Friday entered into talks with federal officials about how to stabilise the struggling financial giant.
The report came amidst some analysts saying that infusion of $50 to $100 billion might be needed to bail out the bank.
The course of action, however, remained uncertain on Friday night, the people involved in talks were quoted as saying, and other options may yet emerge. But after a year of gaping losses and an accelerating decline in share price, Citigroup, which has $2 trillion in assets and operations in scores of countries, is running out of time, analysts were quoted by The New York Times as saying.
The paper said, Citigroup's management and some board members held several calls with Henry M Paulson Jr, the Treasury secretary, and with the president of the Federal Reserve of Bank of New York, Timothy E Geithner, who later emerged as President-elect Barack Obama's choice to be Treasury secretary.
Source: PTI
Obama offers massive job-creation plan
President-elect Barack Obama on Saturday offered an outline of his economic recovery plan and jobs were the top priority.
American workers will rebuild the nation's roads and bridges, modernize its schools and create more sources of alternative energy, creating 2.5 million jobs by 2011, Obama said in the weekly Democratic address, posted on his Web site.
"These aren't just steps to pull ourselves out of this immediate crisis," he said. "These are the long-term investments in our economic future that have been ignored for far too long."
Details of the plan are still being worked out by his economic team, Obama said, but he hopes to implement the plan shortly after taking office January 20.
He referred to figures out this week showing that new home purchases in October were the lowest in 50 years, and that 540,000 new unemployment claims had been filed -- the highest in 18 years.
"We must do more to put people back to work and get our economy moving again," he said. More than a million jobs have been lost this year, he said, and "if we don't act swiftly and boldly, most experts now believe that we could lose millions of jobs next year."
The plan will be aimed at jump-starting job creation, Obama said, and laying the foundation for a stronger economy.
To read on...click on the link below
http://www.cnn.com/2008/POLITICS/11/22/obama.economy/
American workers will rebuild the nation's roads and bridges, modernize its schools and create more sources of alternative energy, creating 2.5 million jobs by 2011, Obama said in the weekly Democratic address, posted on his Web site.
"These aren't just steps to pull ourselves out of this immediate crisis," he said. "These are the long-term investments in our economic future that have been ignored for far too long."
Details of the plan are still being worked out by his economic team, Obama said, but he hopes to implement the plan shortly after taking office January 20.
He referred to figures out this week showing that new home purchases in October were the lowest in 50 years, and that 540,000 new unemployment claims had been filed -- the highest in 18 years.
"We must do more to put people back to work and get our economy moving again," he said. More than a million jobs have been lost this year, he said, and "if we don't act swiftly and boldly, most experts now believe that we could lose millions of jobs next year."
The plan will be aimed at jump-starting job creation, Obama said, and laying the foundation for a stronger economy.
To read on...click on the link below
http://www.cnn.com/2008/POLITICS/11/22/obama.economy/
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