Tuesday, June 9, 2009

Stimulus will ramp up in Mass.. TARP funds being paid back?

Some positive news from the White House... Obama wants to cut the red tape and save or create 600,000 jobs. We in Mass can hopefully look forward to spending wisely 15 million on highway work all over the State, repairs of air fields a new sewage treatment plant etc etc, and 25 million for youth summer jobs. In the bigger picture, money will go to fund 135 education jobs, 5,000 new cops, 200 rural waste and water treatment, improvements in 90 VA centers and 20 Superfund clean up sites. I think what is holding States from getting this money, may not be Washington itself, but the States inability to get these funds under the current government guidelines. All these funds have to be keep track of and I'll bet, even our State (our own stimulus czar) has not yet figured out how to do anything with the money, that doesn't take on unethcial behavior, in terms of the open bid process or other rational accounting standards. Remember, Deval is off and running and he certainly wants to claim as much credit for the stimulus money as he can and the feds may have made it difficult for Deval to use this money to his advantage.

On a side note, Lobbyists from about 60 Mass companies have increased spending at the White House for the first three months of this year. First Wind spent 120,000, Raytheon spent 1.36 million, Mass Mutual Life Insurance spent 790,00, Sepracor spent 1.3 million, State Street Bank spent 210,000 (recipients of Trap money) and our old buddy Josh Boger at Vertex spent 180,000 along with the other 55 companies who have spent money on lobbyists.

And 10 banks have applied to return 65 billion or so in TRAP loans... and they say we made a few bucks on the interest. Not to look a gift horse in the mouth, but the truth seems to be, that these big freaking money pits don't want the pay restrictions that the TARP money comes with. I guess it s good to see some of the big players passing the stress tests, whatever they are, but Citi seems to be the one that didn't pass... seems like they may have more trouble.