Your bill for the bailout. And a few questions for the guys with the printing press
Filed under: Banks, Borrowing, Debt, Fraud, Recession, Bankruptcy
It's almost impossible to get your head around the numbers: $700 billion for "troubled Assets;" $25 billion for the auto industry. $300-some billion to bail out Citigroup.With this last promise, the United States Government has now pledged $7.76 trillion on behalf of American taxpayers to try and rescue our financial system. That's Trillion. With a T.
According to Bloomberg, which has an outstanding break-down of the very big mess we're in, the amount of money pledged so far amounts to about $24,000 for every man, woman and child in the United States. That sounds sort of tame to me, outrageous as it is. I guess all these numbers are making me immune to shock.
Of course give it a couple of days. It's bound to go much higher.
Barry Ritholtz at the Big Picture points out that the current credit crisis outlay is the costliest by far in American History, costing more than other big-government expenditures, including the Vietnam War, the Iraq invasion, the New Deal, the Marshall Plan, and the Louisiana Purchase (adjusted for inflation) combined.
So considering that this is a historic occurrence, being paid for on my time with my tax dollars, I do have a couple of questions -- and pardon me ever so much for my ignorance, being but a humble citizen and not a Master-of-the Universe:
1.) How is trying to spur lending to an over-leveraged and utterly tapped-out consumer going to help the economy?
2.) What's in it for us, the little people? How about something we could all benefit from, such as basic universal health care for all citizens. What's the reason we don't have it yet? Is it because it's "too expensive?" Or is it because it's too much like "socialism," which is patently un-American.
3.) And if that's the case, can you explain Fannie Mae and Freddie Mac to me? What about all those bank takeovers? And guaranteeing $300 billion to Citigroup? Can you define "Free Market doctrine?"
4) Where is all this money coming from really? I thought the United States was now a debtor nation, and as such, doesn't actually have the cash for this kind of thing. Who are we borrowing it from? Or are we just printing money? Does that strategy ever end well?
5) I have a few irrational investments over the past few years that are now languishing on my credit card. I'll need a bail-out myself. The American Taxpayer is too big to fail, after all. Can I get Hank Paulson's email?
Reader Comments (Page 1 of 1)
11-25-2008 @ 8:05PM
leftenant krumpet said...
24 grand is nothing for us.feel sorry for the bonus barons that have to make do with a measley 25 million.they could blow that wad in one weekend's golf outing.
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11-25-2008 @ 8:26PM
David G said...
Maybe the New York Times have seen their share price drop due to fear that Mr. Bernanke will have to commandeer their printing presses? Just a thought.
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11-26-2008 @ 3:57PM
G.J. Miller said...
Hey folks--Remember the good old days, when republicans said we needed to privitize Social Security because it would need $350 billion to keep it solvent after 2032? Where would all that garranteed pension money come from. Wow am I glad we didn't go that route. The president was so upset that he went to his ranch to pout because he didn't get his way. What was the "coup de grasse" was he was at the ranch when hurricane Katrina hit New Orleans, and came damn near close to destroying a large American City. It took 3 days to get him to just fly over the city so he could see the damage. I can't say for sure, but I don't think he gave a damn. I am sorry folks, but I can't comprehend this huge amount of money being spent on businesses that do not manufacter a thing. This was a paper chase of epic proportions and I do not see why every money company needs a bailout.
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11-25-2008 @ 10:52PM
Daniel Lovejoy said...
Remember "TAXATION WITHOUT REPRESENTATION"? How many of you were asked if you agreed with this use of taxpayer money?
Personally, I am beginning to think we need another Boston Tea Party.
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12-02-2008 @ 4:00PM
Peg said...
Boy, I wish the gov't would make sure to bail out Social Security. Especially since those are OUR money accounts that we have been depositing into for a decades. Personally I have been paying in to Social Security for nearly 40 years with about 10 more years to go before retiring. I would definitely vote for a bail out for that before some of these poorly run companies with fat cats getting huge salaries and bonuses. I will need my measly $1,000-1,200/mo and yes, I am counting on it and I have a right to. If not, then dang it...............give me my money back!!!!!!
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12-03-2008 @ 12:09AM
char said...
I heard today that to date the amount is 8.5 TRILLION! I am a small town builder that has banked withthe same bank for 17 of the twenty years that I have been in buisiness or should I say was because today my bank gave me their desicion that they won't work with me on my loans for 2 specs and the 4 lots I have and will go after me for everything that I have as they are forcing me to go out of business unless I give them my house that I live in also. WHAT THE HECK IS OUR GOVERMENT DOING FOR US? I have worked hard and now I am given NO CHOICE! It's their way only. I have an attorney and he does't seem to know anymore than I do about what to do. Maybe the goverment would like to help this bank out also ust like everybody else so they can have they big parties and such as we lose everything we have worked for all our lives. I have an email out thier called "An American Helping An American so if you see it or come across it consider it and help this American. I can't sell my homes now no matter what I do but I could get each american to give just $1 I could get myself out of this and help other Americans do the same. We need to take care of each other because it's all we have left that we can do. You know the saying "United We Stand Divided We Fall". Maybe we can't change some things, but somethings we can.
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12-23-2008 @ 11:09AM
L2Think said...
700 billion? Bloomberg just reported last week that the Federal Reserve (no more federal than fedex) has taken 8.5 trillion. This private group of bankers that prints our money has got to stop. They are ruining our country. Why do we pay them interest to print us money we could print for free? Bailing out these banks is beyond stupid and we have given them free reign to do as they please with NO oversight, read the banker bail out bill if you don't believe me.
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