Here’s the latest figure on the potential cost of the massive bailout.
Not surprisingly, it is a figure that just keeps getting bigger and bigger.
In fact, the latest tally in now an astonishing $12.8 trillion-a $3 trillion increase over the previous number reported in February.
That is the equivalent of 12,800,000 million dollar bills if there was such a thing—a number entirely too big for anyone to wrap their heads around.
The funny thing is it’s enough to payoff every single mortgage in the entire country, and a the majority of it has never been voted on by lawmakers!
Instead, it has been dumped onto the backs of taxpayers by fiat alone, courtesy of the FDIC and the Federal Reserve.
From Bloomberg by Mark Pittman and Bob Ivry entitled: Financial Rescue Nears GDP as Pledges Top $12.8 Trillion
“The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, to stem the longest recession since the 1930s.
New pledges from the Fed, the Treasury Department and the Federal Deposit Insurance Corp. include $1 trillion for the Public-Private Investment Program, designed to help investors buy distressed loans and other assets from U.S. banks. The money works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation’s gross domestic product was $14.2 trillion in 2008.
President Barack Obama and Treasury Secretary Timothy Geithner met with the chief executives of the nation’s 12 biggest banks on March 27 at the White House to enlist their support to thaw a 20-month freeze in bank lending.
“The president and Treasury Secretary Geithner have said they will do what it takes,” Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said after the meeting. “If it is enough, that will be great. If it is not enough, they will have to do more.”
Commitments include a $500 billion line of credit to the FDIC from the government’s coffers that will enable the agency to guarantee as much as $2 trillion worth of debt for participants in the Term Asset-Backed Lending Facility and the Public-Private Investment Program. FDIC Chairman Sheila Bair warned that the insurance fund to protect customer deposits at U.S. banks could dry up because of bank failures.
The combined commitment has increased by 73 percent since November, when Bloomberg first estimated the funding, loans and guarantees at $7.4 trillion.”
Again, this is nothing short of outrageous.
By the way, The $12.8 trillion in pledges would be enough to send a $1,882.35 check to every man, woman and child alive in the world and is more than enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve.
Related Articles:
The “bad bank” financial crisis rap song
CBO warns Obama stimulus package harmful long term
Santelli’s Tea Parties Spread like Wild Fire
Americans Agree With Rick Santelli
To learn more about Wealth Daily click here
