Program and Events 2009
Revitalizing the American and the Global Economy
Updated March 25, 2009 with Information on the Department of the Treasury's Public-Private Investment Program for legacy loans and securities.
In his first month in office, President Obama, the Obama Administration and the U.S. Congress have taken a number of important steps to address the crisis that has affected the U.S. economy and the global economy. The challenge that we face together is serious and real. As President Obama said in his Address to a Joint Session of Congress on February 24, "The state of our economy is a concern that rises above all others, and rightly so." In that same address, however, he assured the Congress and the American public, "while our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times...we will rebuild, we will recover, and the United States of America will emerge stronger than before." President Obama emphasized the importance of global partnership and cooperation "to respond to an economic crisis that is global in scope." Noting our work with the nations of the G20 to restore confidence in global markets, the President said, "the world depends on [America] having a strong economy, just as [America's] economy depends on the strength of the world's."
On March 23, Secretary of the Treasury Timothy Geithner announced the Department of the Treasury's plan to provide a market for legacy loans and securities burdening the financial system. In an op-ed published March 23 in the Wall Street Journal, Secretary Geithner wrote that our goal must be "a stronger system that can provide the credit necessary for recovery, and that also ensures that we never find ourselves in this type of financial crisis again," and confirmed that the U.S. Government is "moving quickly to achieve those goals, and...will keep at it until we have done so."
Additional information on the Department of the Treasury's plan is available in a number of documents, including:
Whitepaper on the Public-Private Investment Program;
FAQ on the Public-Private Investment Program for Legacy Loans;
FAQ on the Public-Private Investment Funds;
Summary of the Terms of the Legacy Loans Program;
Summary of Terms of the Legacy Securities Public-Private Investment Funds
On March 2, the Office of the United States Trade Representative (USTR) released the President’s 2009 Trade Policy Agenda and 2008 Annual Report. This document “addresses the underlying goals and priorities for this Administration’s trade policy within the context of a financial crisis and rapidly changing economies.”. The U.S. believes that strong, growing and mutually-beneficial trade relationships, such as those between the U.S. and the UAE, are a key element of the global strategy to stabilize credit markets and restore the world's economic systems.
On February 17, President Obama signed the American Recovery and Reinvestment Act. This $789 billion economic stimulus package will create or save 3.5 million jobs over the next two years, jumpstart growth and help transform the American economy to better compete in the 21st Century. The legislation focuses on job creation in a range of industries from clean energy to health care, with over 90% of jobs in the private sector. It will also double renewable energy generating capacity over three years, invest $150 billion in national infrastructure (e.g., roads, bridges and transportation), and protect health coverage for millions of Americans.
In late January, Treasury Secretary Timothy Geithner announced a Financial Stability Plan to help restore credit flows, reform and strengthen banks, attract private capital to promote renewed lending, and assist homeowners and small businesses seeking credit. The plan also imposes stringent standards for transparency and accountability. For the plan to restore credibility and trust in financial markets, it is essential for the American public -- the taxpayers -- to know that the funds provided have been used prudently and correctly.
The Administration also seeks to provide relief to homeowners and communities that have been affected by tightening credit and a wave of foreclosures. The Homeowner Affordability and Stability Plan will help between seven and nine million homeowners refinance and restructure mortgages to affordable levels and stave off the devastating consequences of yet more foreclosures. The Treasury Department has also announced an increase in funding for Fannie Mae and Freddie Mac, the largest mortgage refinancers in America, to ensure the stability of mortgage markets, sustain mortgage affordability and keep interests rates low.
President Obama has also established a new Economic Recovery Avisory Board, led by former Federal Reserve Chairman Paul Volcker, to provide independent advice and counsel to the President as he and the Administration formulate and implement plans for economic recovery.