Translation from Russian press http://www.lenta.ru/articles/2009/01/16/plan/
Program Troubled Asset Relief Program (TARP), with a greater scratch accepted by the Congress in October, 2008, will earn on full capacity. How much " plan of Polson" as in a simple way called TARP, has appeared successful, to judge difficultly. In both chambers of the Congress the plan subjected to the ruthless criticism from the very beginning of its action. Republicans, in particular their right wing, protested against the fact unprecedented on scales of intervention of the state in economy. Democrats concerned more loyally to offers of Minister of Finance Henry Polson. However and among them many showed discontent with support of "rich persons" instead of assistance to ordinary citizens. It is necessary to note, that the program has initially been focused on the repayment at banks of problem actives, however instead of it the state directly was enclosed in financial institutions, having redeemed packages of their preference shares. This revision of the plan on the move has only strengthened a wave of discontent.
The majority of experts, nevertheless, are assured that owing to plan полсона was possible to avoid full breakdown of bank sector after bankruptcy инвестбанка Lehman Brothers. If the capital of leading banks has not been filled up, of them the same destiny that threatened with unpredictable consequences could expect many. On the contrary, support of the government has installed some confidence of the financial markets. Share indexes of the developed countries have suspended landslide falling, and, that it is even more important, the interbank credit after falling reached record of rates LIBOR became accessible.
However hopes which were assigned to the plan, to the full were not justified. Banks continue to incur enormous losses, and financial crisis перерос in global economic in which epicentre again there were USA. Industrial production has established records of falling in the autumn, the market of the real estate has not shown any attributes of recover, and growth of gross national product of the country in 2008 can become negative. It has allowed most ярым to critics to speak that 350 billion from 700 have simply gone broke.
We shall go another by!
Barrack Обама. Photo AFP
The criticism of the program was so sharp, that Georges Bush's administration has despaired to receive from the Congress second half of means for hands. " I and three dollars shall not give them, not that that 350 billion ", - Barbara Bokser has declared one of these days the congressman from California. Therefore the present American government has decided to pass on the baton to the successors which the democratic majority in the Congress has obviously a kind feeling. Here, the truth, republicans have risen already, but their political weight is now insignificant, so further dissatisfied muttering business is not has gone. As a result of January, 15th the Senate has solemnly handed over to Barrack Обаме the conditional check for 350 billion dollars.
At new administration absolutely and its advisers assume to spend other plans for second half TARP. Обама money for support of the housing market which is being a condition of free falling since 2006. In particular, is supposed financing the repayment of hypothecary credits and securities connected with them to revive interest of Americans to purchase of houses on credit. It should push upwards the falling prices for habitation with what gradual restoration of economy will begin.
Though activity of the government within the limits of TARP proceeds, political circles of America have already understood, that these efforts will be obvious insufficiently. Besides right after elections Обама has promised the massed state help to economy. Its sizes changed, by different estimations, from all of the same 700 billion up to 1,2 billion dollars. Eventually, bowels for the present the Shadow Cabinet were left with the concrete plan which total sum assumes charges in 825 billion dollars.
Where this money will go? Directions to which it would be given the lion's share of attention, in the program are not present. The Greatest part - 275 billion dollars - will leave on tax privileges for Americans. Within two years each worker will receive on 500 dollars, and each pair - on one thousand dollars. Besides taxes to purchase of habitation and reception of higher education - a maximum for 7500 and 2500 dollars accordingly will be lowered. Some tax indulgences will receive also separate branches of business.
The others of 550 billion will leave on the state investments and the direct help jobless and poor.
Last item of the program became one of the greatest on financing, in its frameworks it is supposed to spend 70 billion dollars. Unemployment benefits will be increased by 25 dollars a week besides requiring the opportunity of free-of-charge training will be given to a number of trades. About 20 billion it will be spent on фуд-стемпы (food-cards) and billion more will leave on the grant for heating.
The science and technological sphere will receive about 20 billion dollars which half will leave on modernization of laboratories and an other scientific infrastructure, and 6 billion more will spend for distribution of the broadband Internet to rural and most depressive city areas. For an infrastructure it is allocated in total more than 90 billion dollars. From them: 32 billion - on transport projects, 31 billion on repair and construction of the buildings which are being the federal property, 19 billion - on projects on improvement водоcнабжения.
To sphere of power will get 58 billion dollars which most part will go on expenses on decrease in harmful emissions on power stations. 80 billion will be spent for formation, including grants for the sum of 41 billion for local schools. As to public health services within the limits of " plan Обамы " this program becomes the largest. For it will spend more than 150 billion dollars. More half will leave on the grant to staffs (in the USA they bear the greatest part of charges on public health services on the shoulders) on maintenance of existing system of medical aid.
At last, about 4 billion dollars the government has decided to allocate for law enforcement bodies, and all this sum will get to police forces of staffs and districts.
Who would have ever expected it
The administration of the city of Dayton in state of Ohio has addressed to Barrack Obama with the request for financial support of prostitutes, informs Bloomberg. It is a question of allocation within the limits of the new plan of one and a half million dollars for construction of the rehabilitation centers and conversion training of representatives of this trade. The mayoralty of Dayton is measured to help to get rid to "women of easy virtue" of alcoholic and narcotic dependence, and also to find it habitation.
Though the majority of Americans support the program on a conclusion of economy from crisis, in the general chorus dissatisfied voices are still audible also. They first of all mention a theme of a covering of huge holes in the budget which are formed as a result of realization at once several scale programs. As the government is not going to raise taxes, to extract means it will be possible only by external and internal loans.
Even rather successful last years the budget of the USA was stably scarce, and the negative balance amazed imagination. Only in 2007 to the government, on a background of strong economic growth, it was possible to finish parameters of deficiency to 150 billion dollars. But here crisis has burst, incomes of treasury have decreased, and on results of 2008 (in the USA it comes to an end in September), deficiency made already 450 billion that became a record in absolute expression. Up to a maximum concerning figures of gross national product remains a little: the American congressmen estimate figure for 2009 at a rate of 1,18 billion dollars that makes 9 percent from volume of economy - unprecedented result from the Second world war. In 2010 the sum will be a little bit less, but all the same much more will outstrip budgetary deficiencies 2007 and 2008 together taken - 703 billion dollars. Let's note, that all these figures do not consider " plan Обамы ", and together with it the USA within two years will have negative balance of 2,6 billion dollars.
Meanwhile, the external duty of the USA has already reached 10,6 billion dollars, that concerning gross national product is the worst result since 80th years (more than 70 percent). If before the USA were considered as the sample of financial restraint in comparison with the "socialist" European countries traditionally having greater debts now Americans have started to catch up very quickly with them in wastefulness.
The market of the American bonds reacts to these calculations also. Financial crisis had one positive moment - rates of percent under the state obligations sharply send away downwards as investors aspired to rescue at any cost the money, preferring reliability of profitableness. As a result percent have fallen up to long-term minima that has facilitated loans for Washington. But now the turn of the tendency is possible. Having learned, that the American administration is measured to borrow money in absolutely astronomical quantities, investors began to reflect on prospects of the USA as reliable debtor. Certainly, under serious doubt the confidence of America is not put yet, but it is quite possible to expect, that with growth of volumes of loans appeal of state bonds will fall. So, loans for the American state become more dear, increasing burden of the biggest national duty in the world