Total Bailout Cost Heads Towards $5 TRILLION


HK4U

New member
I just keeps getting better and beter.

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Total Bailout Cost Heads Towards $5 TRILLION



Numbers becoming meaningless as Paulson defends government intervention

Steve Watson
Infowars.net
Wednesday, Oct 15, 2008

The total potential cost of the financial bailout to the U.S. taxpayer is already rapidly approaching $5 trillion, over seven times as much as the meaningless $700 billion bailout bill figure.

Analysts have previously marked out the $5 trillion figure as the actual cost, now those predictions are becoming demonstratively accurate.

Meanwhile, Hank Paulson has defended government intervention, stating “There’s no doubt that the way to get the maximum bang for the taxpayers here was to invest in banks.”

Based on this Reuters summary and the sources linked within the table, here is a breakdown of the bailout’s cost to taxpayers so far.

Bailout Type Cost To Taxpayers
Pelosi’s latest economic-stimulus package $300 billion
Paulson’s Bank Nationalization package $250billion
Bailout to the American car companies $25 billion
Nancy Pelosi’s bailout of the state and local governments $150 billion
Financial “bailout” bill $700 billion+
Bear Stearns financing $29 billion
Fannie Mae and Freddie Mac nationalization $200 billion
AIG loan and nationalization $85 billion (+ extra request of $35 billion)
Federal Housing Administration housing rescue bill $300 billion
Mortgage community grants $4 billion
JPMorgan Chase repayments $87 billion
Loans to banks via Fed’s Term Auction Facility $200 billion+
Loans from Depression-era Exchange Stabilization Fund $50 billion
Purchases of mortgage securities by Fannie/Freddie $144 billion
POSSIBLE TOTAL $2.56 trillion+
NUMBER OF HOUSEHOLDS PER
U.S. CENSUS 105,480,101
POSSIBLE COST PER HOUSEHOLD $24,269

In addition, the U.S. government has said it will temporarily guarantee $1.5 trillion (£856 billion) in new senior debt issued by banks, as well as insure $500 billion (£285 billion) in deposits in non-interest accounts, mainly used by businesses.

These figures take the potential cost to $4.559 trillion+ - or $43, 221 per household.

Furthermore, when you account for the fact that the credit default swap market is around $62 trillion, and that derivatives worldwide are worth between between $1 and $2 quadrillion, the numbers start to become meaningless
 

Sheldon

New member
Sounds a but skewed but then you have to figure in all the pork barrel stuff, and the inflated wages of the departments needed to distribute and audit the money, add a big bonus for the CEO's for getting a bail out... 1 trillion for that and the .5 for the actual loans... yeah that sounds about right.
 

tattedupboy

Thank God I'm alive!
Hyperbole can be a powerful tool. I have no doubt that the actual cost of the bailout to the taxpayers is well above the $700 billion that has been appropriated, but $5 trillion seems a bit inflated.
 

HK4U

New member
Fifty years ago most would have said the same thing about the national debt as it stand today too. Our bureaucrats have learned to waist tax payers money with phenomenal success.
 

tattedupboy

Thank God I'm alive!
Fifty years ago most would have said the same thing about the national debt as it stand today too. Our bureaucrats have learned to waist tax payers money with phenomenal success.
That's true, but I know hyperbole when I see it, and this is definitely hyperbole.
 

HK4U

New member
As many times as I have not agreed with tattedupboy, I am afraid he is right on this one... the numbers have been heavily inflated for the press.

Perhaps but I don't think we have seen the bottom line yet. Usually the government tries to underestimate everything so as not to panic the sheeple.
 

kwo51

New member
This is all bullshit.Why give the bum's anything? I wish I had a fortune 500 company going belly up so I could get half a billion or so.The hole thing is socialism and it is being shoved down our throats.When does the people have to bail out a bad government? This is alll wrong.:moil:
 

NDS

New member
Argue about the dollar amount all you please; the real cost is in the loss of our liberty and the republic.
 

HK4U

New member
I never attempted to show that anything I said was anything more than an opinion. You're the one telling me that my opinion is wrong.

Yes I believe your opinion is wrong just like you think mine is wrong. We both are entitled to our opinions. We will just have to wait and see which one turns out to be correct.
 

tattedupboy

Thank God I'm alive!
Yes I believe your opinion is wrong just like you think mine is wrong. We both are entitled to our opinions. We will just have to wait and see which one turns out to be correct.

Yes, the key word here is believe. The fact is, since we're both expressing opinions, and not verifiable facts, they are what we believe, not what we know.
 

HK4U

New member
Yes, the key word here is believe. The fact is, since we're both expressing opinions, and not verifiable facts, they are what we believe, not what we know.

Yes only time will tell. Actually I hope you are right. I would get little satasfaction out of being right on this but as of now I feel that that is the way it will go.
 

tattedupboy

Thank God I'm alive!
Yes only time will tell. Actually I hope you are right. I would get little satasfaction out of being right on this but as of now I feel that that is the way it will go.

I hope I'm right too, and, as I expressed earlier, I believe that I am.
 

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