Government bailout hits $8.5 trillion

[Orwellian_Ghost]

Government bailout hits $8.5 trillion
Kathleen Pender
Wednesday, November 26, 2008

The federal government committed an additional $800 billion to two new loan programs on Tuesday, bringing its cumulative commitment to financial rescue initiatives to a staggering $8.5 trillion, according to Bloomberg News.

That sum represents almost 60 percent of the nation's estimated gross domestic product.

Given the unprecedented size and complexity of these programs and the fact that many have never been tried before, it's impossible to predict how much they will cost taxpayers. The final cost won't be known for many years.

The money has been committed to a wide array of programs, including loans and loan guarantees, asset purchases, equity investments in financial companies, tax breaks for banks, help for struggling homeowners and a currency stabilization fund.

Most of the money, about $5.5 trillion, comes from the Federal Reserve, which as an independent entity does not need congressional approval to lend money to banks or, in "unusual and exigent circumstances," to other financial institutions.

<snip>

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/11/26/MNVN14C8QR.DTL

[Earth_First]

1. 10 trillion by January 19th... n/t

[Orwellian_Ghost]

5. Here's the breakdown

[kentuck]

8. I see we have committed $139 billion to General Electric ??

What the hell for?? Aren't they a corporation more similar to GM than the financial industry??

[tama]

13. All that

just trying to save Wall Street whose greed is killing our planet.

And how much into trying to save the planet?

Sorry, but no avoiding this: the sooner this sick system dies, the better for the planet and the remaining human kind.

[Bluebear]

2. THANK GOD IT PASSED!

:crazy:

[w4rma]

3. I think it's time for the Federal Reserve to be re-nationalized. (nt)

[gristy]

4. There's been some threads here that argue that dubious methods are being used to come up with

these totals. Clearly we are pissing a lot of money down the toilet, but it's being argued that it's not $8.5T.

[Orwellian_Ghost]

6. Here's an explanation

There's a 30 second intro:

http://www.youtube.com/watch?v=O7Ti17PlJH8&feature=channel

[Zynx]

9. It's certainly not $8.5 trillion. Also, most of this is Fed money which is not tax payer money.

[kentuck]

10. What do you mean?

All my money says "Federal Reserve Note" on it??

[Orwellian_Ghost]

11. Could you please explain in more detail

Please expand on both points.

[gravity]

14. The Fed is setting up something like an insurance policy

It is covering $8.5 trillion in assets, but it is only using a fraction of the amount, $800 billion dollars, to back it up.

The money that is being used has been basically printed by the Fed.

[MineralMan]

7. Never mind...it's only money. (nt)

[ixion]

12. Thank goodness. It would simply break my heart to see a bunch of billionaires go hungry

:sarcasm:

[Octafish]

15. United Slaves of America

Get to work, you lazy bums.
We'v got a stack of resumes a foot high that can do your job.
Be thankful you got health insurance.
Don't even think about starting a union.
Who needs manufacturing? You can always buy a Honda.