luckydevil Posted November 24, 2008 Share Posted November 24, 2008 http://bloomberg.com/apps/news?pid=20601109&sid=arEE1iClqDrk&refer=home highlights: Nov. 24 (Bloomberg) -- The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg. The commitment dwarfs the only plan approved by lawmakers, the Treasury Department’s $700 billion Troubled Asset Relief Program. Federal Reserve lending last week was 1,900 times the weekly average for the three years before the crisis. The money that’s been pledged is equivalent to $24,000 for every man, woman and child in the country. It’s nine times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office figures. It could pay off more than half the country’s mortgages.“It’s unprecedented,” said Bob Eisenbeis, chief monetary economist at Vineland, New Jersey-based Cumberland Advisors Inc. and an economist for the Atlanta Fed for 10 years until January. “The backlash has begun already. Congress is taking a lot of hits from their constituents because they got snookered on the TARP big time. There’s a lot of supposedly smart people who look to be totally incompetent and it’s all going to fall on the taxpayer.” President Franklin D. Roosevelt’s New Deal of the 1930s, when almost 10,000 banks failed and there was no mechanism to bolster them with cash, is the only rival to the government’s current response. The savings and loan bailout of the 1990s cost $209.5 billion in inflation-adjusted numbers, of which $173 billion came from taxpayers, according to a July 1996 report by the U.S. General Accounting Office.The 1979 U.S. government bailout of Chrysler consisted of bond guarantees, adjusted for inflation, of $4.2 billion, according to a Heritage Foundation report. The commitment of public money is appropriate to the peril, said Ethan Harris, co-head of U.S. economic research at Barclays Capital Inc. and a former economist at the New York Fed. U.S. financial firms have taken writedowns and losses of $666.1 billion since the beginning of 2007, according to Bloomberg data. “This is the worst capital markets crisis in modern history,” Harris said. “So you have the biggest intervention in modern history.” LOL, this is beyond crazy. Link to comment Share on other sites More sharing options...
twa Posted November 24, 2008 Share Posted November 24, 2008 LOL, this is beyond crazy. Just wait ,it gonna get even crazier. Link to comment Share on other sites More sharing options...
luckydevil Posted November 24, 2008 Author Share Posted November 24, 2008 Well, the American dream is dead. A damn shame. Link to comment Share on other sites More sharing options...
DjTj Posted November 24, 2008 Share Posted November 24, 2008 http://bloomberg.com/apps/news?pid=20601109&sid=arEE1iClqDrk&refer=homeLOL, this is beyond crazy. The $7.4 trillion number is really just meaningless though. The FDIC’s $1.4 trillion in guarantees will amount to a bank subsidy of as much as $54 billion over three years, or $18 billion a yearThey are counting the $1.4 trillion number, but it's really only going to cost $54 billion.The $2.8 trillion "already tapped" number seems like a more accurate number, although even that is inflated because a lot of that is short-term debt that we are almost certainly expecting to be repaid. ...we won't really know how much this is all going to cost until it is over, but if it really costs the government anywhere close to $7.4 trillion when everything is settled, then we will be in big trouble. Link to comment Share on other sites More sharing options...
AsburySkinsFan Posted November 24, 2008 Share Posted November 24, 2008 A trillion here and a trillion there, sooner or later you're talking about a lot of money. BTW, I wonder if this will have the same powerful and transparent oversight that the bailout has. :doh: Link to comment Share on other sites More sharing options...
FanboyOf91 Posted November 24, 2008 Share Posted November 24, 2008 The inflation on this is gonna suck hard. Link to comment Share on other sites More sharing options...
Veretax Posted November 24, 2008 Share Posted November 24, 2008 God Save us from Bipartisanship! :/ Link to comment Share on other sites More sharing options...
Predicto Posted November 24, 2008 Share Posted November 24, 2008 I read the article and I can't firgure out where the $7.4 trillion figure is coming from. It looks to me like they are mashing a lot of different things together that have little to do with one another. For instance, negotiating short term commercial paper is nothing like the other items. Link to comment Share on other sites More sharing options...
Hubbs Posted November 24, 2008 Share Posted November 24, 2008 Gosh, I can't wait until the yen is worth more than the dollar. Link to comment Share on other sites More sharing options...
SnyderShrugged Posted November 24, 2008 Share Posted November 24, 2008 The faucet doesnt appear to have an off position. This is insane! When will the powers that be realize that the slippery slope gets downright impossible to navigate through actions such as these? Link to comment Share on other sites More sharing options...
JohnLockesGhost Posted November 24, 2008 Share Posted November 24, 2008 Don't worry. The country's in the very best of hands: The Country's In The Very Best Of HandsThem city folks and we'uns Are pretty much alike Though they ain't used to living in the sticks We don't like stone or cement But we is in agreement When we gets down to talking politics The country's in the very best of hands The best of hands The best of hands The treasury says the national debt Is climbing to the sky And government expenditures Have never been so high It makes a fellow get a gleam Of pride within his eyes To see how our economy expands The country's in the very best of hands The country's in the very best of hands The best of hands The best of hands The building boom' date=' they say Is getting bigger every day And when I asked a feller How could everybody pay He come up with an answer That made everything okay Supplies are getting greater than demands The country's in the very best of hands Fox Motors is connected to the nominee The nominee's connected to the treasury When he ain't connected to the treasury He sits around on his thigh bone He sits around in his fancy car In this big congressional parking lot Just sits around on his you know what Up there they calls it their thigh bone Them bones, them bones Gonna rise again Gonna excercise a franchise again Gonna tax us up to our eyes again! When they gets off of their thigh bone The country's in the very best of hands The best of hands The best of hands Them GOP's and democrats Each hates the other one They's always criticizing How the country should be run But neither tell the public What the others gone and done As long as no one knows Where no one stands The country's in the very best of hands Them bones, them bones Gonna rise again So dignified and so wise again While the budget doubles in size again It gets them off of their thigh bone The country's in the very best of hands The best of hands The best of hands The money that they taxes us That's known as revenues They compound up collaterals Subtracts the residue Don't worry about the principal And interest it accrues They're shipping all that stuff to foreign lands The country's in the very best of hands[/quote'] Link to comment Share on other sites More sharing options...
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