Bailout Tracker Update

pile-o-moneySo how much has the government’s intervention in the financial crisis costing us? According to CNN’s Bailout Tracker, the total amount committed to date is $11 Trillion, with $2.8 Trillion invested so far.

The list of recipients includes AIG, auto suppliers, automotive financing, Bear Stearns, Citigroup, Fannie Mae, Freddie Mac, Bank of America and numerous programs run by the Fed, Treasury and the federal government itself. The total cost to the FDIC alone is $35.5 Billion. See all the gory details here.

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6 Comments on “Bailout Tracker Update”

  1. hippieprof Says:

    You realize, do you not, that we are actually starting to see a profitable return on some of the TARP money? Seems like a pretty good investment to me…

    — hippieprof

    • 13oclock Says:

      hippieprof, do you not recognize desperate propaganda when you see it?

      “This is sort of like calculating the returns on a mutual fund by only counting the stocks in the fund that have gone up. Forgetting for a moment that TARP is only slightly relevant in the entire bailout scheme — more on that in a moment — the TARP calculations are a joke, apparently leaving out huge future losses from AIG and Citigroup and others in the red.”

  2. hippieprof Says:

    Oh, I am keeping a wary eye – but I don’t think anyone expected much of any return on investment here. Let’s see – my suspicion is that the program will still end up costing us a lot – but perhaps quite a bit less from what the worst-case scenarios are predicting.

    Of course, I also believe the truly worst-case scenario would be the massive failure of the financial system had we allowed all of those banks to fail. What we are seeing now is a picnic compared to what that would have been.

    Sadly, though, in economics there is no control group….

    — hippieprof

    • 13oclock Says:

      If not for the threat of capping executive salaries, I doubt we would have seen any return at all.

      My worst-case scenario is actually playing out right now – trillions of fiat dollars created out of thin air to socialize the loss of failed banks and corporations and Bernanke believing he’ll know when to pull the plug though he either didn’t know or wouldn’t admit the bubble was going to pop in the first place.

      True, there is no control group, but there is history. History has shown that no fiat currency has ever survived more than 30 – 40 years. We are now in the 38th year of our fully fiat currency and things don’t look good.

      History also shows that freedom and prosperity are greatest when there is no attempt at central economic planning and the currency is based on a commodity standard.

      If it’s all just an experiment, where do I sign up to be a test subject for option #2?

  3. hippieprof Says:

    If you are correct, I suspect the end of our financial system will be delayed just a bit from what would have been if intervention had not occurred. Seriously, I don’t know if any type of recovery would have been possible had the entire system failed last fall, as indeed it would have. Seriously – from what ashes might recovery have come?

    If this intervention fails – we really won’t have lost anything – it is ashes either way.

    — hippieprof

    • 13oclock Says:

      I agree – the collapse has only been delayed and, in fact, when it finally comes it will be even worse due to the delaying measures.

      Check out the news I just posted – China and the UN are openly talking about ditching the US dollar as the world reserve currency. It’s only a matter of time.

      I’ve been “pushing” Ron Paul’s new book – End the Fed – in this blog and I am personally recommending it to you. It is a non-partison, honest look at some hard facts about money, banking and government. We may not be able to stop the snowball rolling down the hill toward us, but at least we can have some understanding of what made it possible. And maybe, just maybe, what we might be able to do in the aftermath.

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