Bail Out - U.S. on the hook for $23.7 Trillion

[Robert Oak]

Yes, you read that right.

http://www.economicpopulist.org/content/holy-batman-sigtarp-barofsky-says-us-hook-237-trillion-bail-out

As massive and as important as TARP is on its own, it is just one part of a much broader Federal Government effort to stabilize and support the financial system. Since the onset of the financial crisis in 2007, the Federal Government, through many agencies, has implemented dozens of programs that are broadly designed to support the economy and financial system. The total potential Federal Government support could reach up to $23.7 trillion.

http://www.economicpopulist.org/content/holy-batman-sigtarp-barofsky-says-us-hook-237-trillion-bail-out

Raw link has the actual Congressional Testimony document from the TARP inspector general where this quote is from.

I kid you not!

[pscot]

1. A trillion here and a trillion there...

and pretty soon you're talking about real money. Ev Dirksen must be spinning in his grave.

[Robert Oak]

2. it's so massive I don't think people realize what it means

When I saw this story my eyes popped up but I'm primarily an economics blogger too. Here it's rolling off the screen and this news really should not be!

[girl gone mad]

3. I've been digesting this information for a few hours.

It's quite disturbing.

[DemReadingDU]

4. $80,000 per person

7/20/09 The federal government has devoted $4.7 trillion to help the financial sector through its crisis, a watchdog report said Monday. Under the worst of circumstances, the report said, the government's maximum exposure could total nearly $24 trillion, or $80,000 for every American.

read more...
http://www.msnbc.msn.com/id/32010841/ns/business-us_business

There are appx 300 million Americans

[Robert Oak]

5. oh yeah

I think they could have given start up funds to every American (go start your own company) too for some of these amounts.

But watch out, these are commitments, that doesn't mean "spent". So, finding out the details will be key to figuring out the real impact. Which is the 2nd part of the story, auditing the Fed (which was stopped by the Senate) and auditing the TARP.

(more on The Economic Populist)

[truedelphi]

6. Some experts say that with only 430 Billion bucks, every mortgage in the country could be paid off

Out right.

Other experts say that would take nine trillion bucks./

But here we have it - TWENTY THREE FRIGGIN TRILLION DOLLARS GONE UP IN SMOKE.

SO that AIG can bail out Goldman Sachs, who can make arrangements to invest in privatizing your local water utility, and thus securing the 350% profits that will come about when that occurs.

Oh and giving these banks the money so they can lend to We the People on Main Street? Still hasn't happened!!

But Priceless - none the less.

[truedelphi]

7. BTW, Neil Barofsky is IMHO probably the only honest guy that

Obama has appointed as far as the economy goes.

Maybe Sheila Bair over at the FDIC is honest also. (Not sure if O appointed her, if she stayed on after Bush.)