Bail out way, way more than $700 Billion

[Robert Oak]

The global financial crisis is turning into a bigger drain on the U.S. federal budget than experts estimated two weeks ago, ballooning the deficit toward $2 trillion.
Bailouts of American International Group, Fannie Mae and Freddie Mac likely will be more expensive than expected. States are turning to Washington for fiscal help. The Federal Reserve said this week it will begin buying commercial paper, the short- term loans companies used to conduct day-to-day business, further increasing costs. And analysts now say the $700 billion bank- rescue plan passed by Congress last week may have to be significantly larger.

From When $700 Billion is Chump Change

Post goes into more deficit details and how many nations are on the verge of bankruptcy already and also how the Fed is printing money

Raw link:

http://www.economicpopulist.org/?q=content/when-700-billion-chump-change

[no_hypocrisy]

1. I had a feeling that $700 billion was the first installment.

Paulson and Bernake had no idea even in general terms how much pecuniary damage and how much fiduciary repair were necessary.

[Robert Oak]

2. oh yeah

and everyone ignores the ~$850 Billion, give or take a few that they had already spent...

the Fed just released "unlimited dollars" in the intra-bank lending program.

The post above points to this incredible increase in federal debt and what that implies beyond this short term buzz.

[bhikkhu]

3. I like to think of them as I-Dollars

standing for "Infinite Dollars".

The good news is that even if only one of them trickles down to each of us, we will be debt free and set for life!

[Art_from_Ark]

4. These days, they often don't even bother printing it

They just zap numbers into someone's bank account.

[pam4water]

5. If this goes we'll have to devalue our currancy like they did in Chile in 1981.

I found this graphic of the US and British bail out on the BBC's web shight



It doesn't have last $38 billion to AIG and the $40 billion that Fannie and Freddie have to buy.

We are already at 1,236 billion and I don't think all the the "liquidity" the has been injected via the Us Fed Discount Window. The chart say 23 billion but I bet it's more.