Below The Beltway

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Pretty Soon, We’ll Be Talking About Real Money

by @ 12:33 pm on February 9, 2009. Filed under Business, Credit Crisis, Economics, Politics

The total cost of the bailouts is about to increase even more thanks to Obama’s Stimul-Pork:

Feb. 9 (Bloomberg) — The stimulus package the U.S. Congress is completing would raise the government’s commitment to solving the financial crisis to $9.7 trillion, enough to pay off more than 90 percent of the nation’s home mortgages.

(…)

The pledges, amounting to almost two-thirds of the value of everything produced in the U.S. last year, are intended to rescue the financial system after the credit markets seized up about 18 months ago. The promises are composed of about $1 trillion in stimulus packages, around $3 trillion in lending and spending and $5.7 trillion in agreements to provide aid.

Federal Reserve lending to banks peaked at a record $2.3 trillion in December, dropping to $1.83 trillion by last week. The Fed balance sheet is still more than double the $880 billion it was in the week before Sept. 17 when it agreed to accept lower-quality collateral.

The worst financial crisis in two generations has erased $14.5 trillion, or 33 percent, of the value of the world’s companies since Sept. 15; brought down Bear Stearns Cos. and Lehman Brothers Holdings Inc.; and led to the takeover of Merrill Lynch & Co. by Bank of America Corp.

The $9.7 trillion in pledges would be enough to send a $1,430 check to every man, woman and child alive in the world. It’s 13 times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office data, and is almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve.

And that doesn’t include the $ 1 trillion or so in additonal money that will go into a second bank bailout, which Obama is expected to announce tomorrow.

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3 Responses to “Pretty Soon, We’ll Be Talking About Real Money”

  1. Raymond says:

    I think everyone needs to stop what they’re doing and read G. Edward Griffin’s The Creature From Jekyll Island. Then look at what the beautiful people are doing with all this money.

  2. tfr says:

    This is all beginning to go beyond knee-jerk reaction to some imagined threat. How can anyone in his right mind still believe that this bloated pig of a bill will not cause far more problems than simply leaving things alone? It’s beginning to creep me out. I feel like I’m living in a dream, or is it a nightmare?

  3. Cass Phillips says:

    It is starting to scare me badly.
    We have taken a man from nowhere and allowed him and his helpers to start this country on the road to nowhere.
    We are already looking like a nation of boobs and I can’t see any way to stop it.

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