a $250 billion contingency fund?

qizi

Senior Member
Chinese
• THE White House’s biannual budget review is set for release on Tuesday August 25th. The report will update the Obama administration’s economic and budget forecasts America with revised estimates for GDP growth, unemployment and future deficits. It will put the deficit for 2009 at around $1.58 trillion, some $262 billion less than forecast in May because of the reduced costs of economic stabilisation. This has meant that the administration can scrap a $250 billion contingency fund to help the banks. ——The Economist
I was wondering how they could calculate the number of $250 billion for the contignecy fund from the preceding digits.
Thank you.
 
  • Cagey

    post mod (English Only / Latin)
    English - US
    I think that reduced cost of stabilization means that the administration found out that they won't need the $250 billion they thought they might need to give the banks in order to stabilize the economy ~ the money the government was going to put in the contingency fund.

    Along with another $12 billion in unspecified savings, this adds up to $262 billion less than they had thought they would have to spend.
     
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