U.S. & Fed pledges top $7.7 trillion in taxpayer funds for bailout

November 24, 2008 by · Leave a Comment
Filed under: Economic News 

Amazing how quickly we can go from $700 billion to $7.7 trillion.  It is still surprising that no one has really been indicted or even questioned thoroughly with this crisis.  It is a joke to think that nothing illegal has happened during this collapse.  To top that, we are even backing insurance contracts with our tax dollars, heck I want to get insurance like that, it a win-win situation.  Who needs to keep reserves when you can just tap the Federal Government for funds when you get in trouble because you are “too big to fail”.  What a joke, is it April already?

News:

The U.S. government is prepared to provide more than $7.76 trillion on behalf of American taxpayers after guaranteeing $306 billion of Citigroup Inc. debt yesterday. The pledges, amounting to half the value of everything produced in the nation last year, are intended to rescue the financial system after the credit markets seized up 15 months ago.

The unprecedented pledge of funds includes $3.18 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 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.     

Source: Bloomberg

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