Input: Wall Street bailout could open new doors

The federal government's $700 billion financial bailout obligation might result not only in reductions to non-bailout federal contracting, but also the creation of new opportunities for contractors to oversee the Wall Street rescue package, according to a new report from Input Inc., a market research firm in Reston, Va.

Congress authorized purchase of up to $700 billion in troubled mortgage assets to stabilize the nation's credit markets, an amount close to the projected fiscal 2008 expenditures on the Iraq War. A substantial portion of that amount will be offset by sale of those assets but the amount, and timing, of those sales is not known.

Since the bailout is so massive in size, federal agency decision-makers may be forced to limit new spending and cut programs, said Deniece Peterson, a senior analyst at Input.

Democratic presidential nominee Sen. Barack Obama has pledged a line-by-line budget review, and Republican nominee Sen. John McCain wants to freeze discretionary spending to perform top-to-bottom reviews.

"This puts a hamper on agency spending but may free up funding for the policy areas that both candidates are committed to addressing ? health care, energy independence, and tax reform," Peterson wrote. The outcome may be decreased spending on underperforming or costly programs, she added.

Some contractors will benefit from opportunities to help run the Troubled Asset Relief Program within a newly established Office of Financial Stability and within the Office of the Special Inspector General for the program, Peterson said.

About the Author

Alice Lipowicz is a staff writer covering government 2.0, homeland security and other IT policies for Federal Computer Week.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • POWER TRAINING: How to engage your customers

    Don't miss our June 7 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More

  • PROJECT 38 PODCAST

    In our latest Project 38 Podcast, editor Nick Wakeman and senior staff writer Ross Wilkers discuss the major news events so far in 2019 and what major trends are on the horizon. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.