TARP bailout much worse than we thought.

[dgibby]

According to the Center for Media and Democracy, the actual cost of the TARP bailout was not $700 billion as has been widely reported. Instead, the actual total was a whopping $4.6 trillion!

In addition to the original $7.4 billion, the Federal Reserve and FDIC made loans which totaled $3.8 trillion to bailout banks and federal housing agencies. This, combined with the original loans equals $4.6 trillion, which is 130% of the national budget for 2009.


(This was reported by Jessica Yellin on Rick Sanchez's show today on CNN.)

[Happyhippychick]

1. Actually it was $92 bazillion, CNN is wrong.

[dgibby]

2. Boggles the mind, doesn't it? n/t

[jgraz]

3. It's not worse than I thought

Eventually, we're going to find out that the entire thing was a staged crisis to get in one final ginormous looting before B*sh left office.

[dgibby]

7. I agree.

Biggest heist in the history of the world, and not a shot fired.

[Newest Reality]

4. Why doesn't this shock or surprise me?

It was an at gunpoint, in broad daylight, handover of tax dollars and that amount sounds even more realistic here. No torches or pitchforks to be seen. Total placid, passivity overall. If you listen carefully, you can still hear bellows of laughter and spasms of guffaws from certain bank buildings and at various locations on Wall St.

Considering how much 4.6 trillion is, we could have solved so many problems that WE face here in ordinary life -- so very many! Not once was there any mention of getting the money to the people so that it could trickle UP! It probably would have gushed, actually. No, that's not how the new economy works, so we either get real used to it and expect much more of that, (we get the bill but not the meal) or have a massive, concerted reaction in some applicable, reasonable response.

Meanwhile, states and municipalities are bleeding those that have anything left dry with taxes, increased fees, tickets, and any other creative ways they can come up with to address their shortfalls.

[dgibby]

8. Disaster capitalism at its worst. n/t

[leftstreet]

14. [phone]

:thumbsup:

[CrawlingChaos]

5. I think $4.6 trillion is way too low

Over $13 trillion in commitments is what I heard repeatedly. The $700 billion figure was always a calculated deception, and the MSM sure took their sweet time pointing it out, didn't they? Where was was CNN when this abomination was getting ramrodded through? Ah yes, assuring us that the sky would fall if we didn't hand over a blank check. It's a little late for them to start doing their "job".

[meeshrox]

6. Right...

I've seen other estimates that we are "on the hook" for between 24 and 28 trillion...there's more a'comin', folks! I guess the real number is irrelevant to us "commoners."

"U.S. taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bail out financial companies, said Neil Barofsky, special inspector general for the Treasury’s Troubled Asset Relief Program."
-this was written July 2009, looking for more updated info...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aY0tX8UysIaM

Elizabeth Warren has been harping about the commercial real estate bubble. I've spoken with a friend of mine in residential real estate about this, the commercial people are in denial...sound familiar? :shrug:

[dgibby]

11. Thanks for posting the link.

I really do like Elizabeth Warren. Wish Obama would fire the rest of them and hire her (or at least listen to her).

[meeshrox]

12. Amen to that!

Why does she have no power even though she's the chair of the watchdog committee? It blows me away!

[dgibby]

17. 'Cause they can't handle the truth! n/t

[dgibby]

9. They were waiting

for some responsible watchdog group to do their investigative reporting for them. Easier and cheaper that way.

[dgibby]

10. delete

posted twice. stupid computer! lol!

[Midlodemocrat]

13. I heard it was over a brazillion dollars. Just a rumor so far, though.

[KittyWampus]

15. 130%?

[jtrockville]

21. If the national budget for 2009 is $3.54 trillion, then $4.6 is 130% of that.

[taught_me_patience]

16. TARP was a DIVERSION

the real "bailout" was through Fannie Mae and Freddie Mac and the FED buying (worthless) MBS at face value from bankers. That's why we see endless losses from Fannie.

[truedelphi]

18. CNN's own Bailout Tracker has a much higher figure than that

It puts the price at 14 Trillion and counting. Of course the Bailout Tracker considers all of the various programs, not just TARP.

TARP ends up being the tip of the iceberg. And it is so nice knowing that the good folks at AIG and Goldman Sachs have been able to continue to live the lifestyle they so very much deserve.

[laughingliberal]

19. I have seen the figure of $5 trillion mentioned before as being closer to the entire cost of the

bailout, that TARP was just the tip of the iceberg.

[Roland99]

20. It wasn't trillions in actual loans but, rather, loan guarantees

Yeah, we were on the hook for a crapload but no actual loans in that amount.

[Heywood J]

22. This is the problem with having inflated the shit out of the money supply

in the last forty years. Numbers are so high as to no longer make sense to the average person, and they're impossible to keep track of because there's just so much money floating around out there. Especially when the Fed just hand-waved trillions into existence.

I'm half-convinced that it was part of the shell-game to allow this to happen.

[Statistical]

23. That isn't the cost to taxpayers.

A loan doesn't "cost" the lender face value.

When bank loaned you your mortgage they didn't lose $250,000.

The cost to taxpayers will be amount not repaid + govt internet cost - interest/fees collected from banks.

[SOS]

24. Don't forget the $1.25 trillion in mortgage backed securities purchases

Don't you wish you could sell the junk in your garage for 100% of what you paid?
Sweet deal for the crooks.