$7.76 Trillion (so far) to Rescue the Financial System

From Bloomberg News:

U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit

 

Nov. 24 (Bloomberg) — 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.

Continue reading… 

Interesting quotes from the above article…

“The money that’s been pledged is equivalent to $24,000 for every man, woman and child in the country. It’s nine times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office figures. It could pay off more than half the country’s mortgages.

‘Some have asked us to reveal the names of the banks that are borrowing, how much they are borrowing, what collateral they are posting,’ Bernanke said Nov. 18 to the House Financial Services Committee. ‘We think that’s counterproductive.’ “

So it would be counterproductive to tell the American people where their money is going? That sounds rather elitist, Ben. Actually, it sounds quite a lot like taxation without representation…

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