Bailout Cost: Government Prepared To Lend More Than $7.4 Trillion To Ease Credit

The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.

The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg. The commitment dwarfs the only plan approved by lawmakers, the Treasury Department's $700 billion Troubled Asset Relief Program. Federal Reserve lending last week was 1,900 times the weekly average for the three years before the crisis.

Read the whole story here.

Comments

[Graywolf48]

For years it's been reported that corporations pay little or no taxes. In fact, many major corporations get large tax returns. It's also been reported that the wealthy pay very little in taxes, have many loopholes and shelters available to them and are seldom pursued by the IRS as tax cheats, because they can afford hosts of tax lawyers. It has been my understanding that the "little people" the average working stiff pays the bulk of our government's tax revenue and the average taxpayer is actively pursued by the IRS for tax infractions because the average guy is easily intimidated and easily prosecuted. Now I understand the Bush tax cuts will stand under Obama's administration, and we'll see the middle and lower class taxpayer also getting tax cuts. Now I read about 7.2 trillion (is that figure possible?) being loaned to bail out the economy. My question is, with the average wage earner no longer earning wages (record unemployment), failing businesses and everyone getting tax breaks, where will all this money come from? What am I missing? Have I crossed over into the "Twilight Zone"?

[lechatnoir]

The trillions keep piling up. How much more before the party is over?

[markinaz]

That has to be a typo. If it isn't, our currency will soon be worthless.

[Calmom]

This is the Bush Administration, et al, making off with all the bucks. As if the war in Iraq and Afghanistan which handed money over to Halliburton, the oil industry and the military industrial complex (on a silver platter mind you) wasn't enough. Now they have to give a little more money to the bankers and the auto industry. I'm just wondering how the insurance and pharmaceutical companies are going to get their Bush Bucks before the monsters leave office! Really people we need to stand up and say enough is enough. I'm certain if they spread that 7.4 trillion amongst the people are economy would jump start on its own. These greedy bankers knew and know what they are doing. They got themselves into this situation, I say let them get themselves out without the help of taxpayers money. THIS IS ABSOLUTELY CRIMINAL!

[markinaz]

A little more?

[marijam]

I'm fed up with this supply side bailout. I think it has and is failing and that we should try priming the demand side for a change.

[corrupt1]

what a scam

[peterg76]

There's nothing like stealing $7.4 trillion from them to make people feel 'ease.'

[jdfast]

Call a meeting with all the CEO's of the banks and tell them that if they don't start loaning the money to businesses and citizens with good credit, they will lose their money and will go belly up. Put some pressure on the bastards to loan the money. All they are doing now is maiking their bottom line look great to the shareholders because the bailout money is on the books giving them a good looking cash reserve. Make them do what they were supposed to do a month or so ago. Lend the money. But hell no, the Bush administration decided to f--- main street and bail out wall street. Don't ever forget that in 2010. The republicans still believe in the fat cats and the trickle down theory. What do we get when it trickles down? I don't know but its kind of brown and stinks.

[marijam]

Quit giving it the THEM and give it to US. We'll spend it and they'll get it that way. In the meantime, they need to dump the toxic loans.

[jnratliff]

Think about it people we have just witnessed the biggest heist in the history of the world!
With this 7.4 trillion it put the republicans in the range of 20 trillion dollars in 8 years.
Now that is profit you can believe in!!!!!

[curiousasheck]

Quite simply this is without a doubt one of the most unbelievable heists ever pulled off in the history of Civilization.

[Rule Of Law]

"The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers..."

But you show me Bernanke's smiling face--trust me, he's laughing his tuchis off on the inside.

So is the US Government making these loans, or is the money being laundered through the privately owned, and not Federal, Federal Reserve? A private bank that charges interest to us on our own money, by the way.

[hippynanainblingland]

This is just a big game to keep most of in indentured serfdom forever and ever!!!

Score: Pharisees, uxti trillions (or "legal*" ownership of the whole planet, forever, including us).
The rest of us, way less than zero, zip, nada, nil.

And what, indeed, is backing these new funds? Why, nothing more than their word, as in "let there be wealth", and voila, so there is... but just for them.

But remember, rich @$$holes, what happened in France a few short centuries ago.

"Freedom's just another word for nothing left to lose." Janis Joplin.

*"legal" - - - and guess who gets to make the laws? the ones that apply only to the unmoneyed ones, (that's us!) and that, applied in their intentionally haphazard ways serve soooo well to keep us divided to the point of ineffectiveness...

[Rule Of Law]

Actually Kris Kristofferson wrote the song that line came from. The irony is that it always takes for the working class to hit absolute rock bottom before we feel free enough to do anything about it.

[paixa3]

Send this man to PRISON.

[LisaJeanM]

And the really scary thing is, 7.5 trillion probably won't be enough.

We are in some serious trouble kids---to put it mildly.

[paixa3]

Not if the rethuglicants and democants do not offer ANY BAILOUTS. PERIOD.

They believe in the markets, let them pay the price. It has to take place sometime, the sooner, the better.

[Opinionater]

Borrow and spend has been the mantra for the last 8 years, does this come as a surprise to anyone? How about the people who voted these crooks in?