Monday, November 24, 2008

$700B is Chicken Feed

Try $7.76 trillion. This is according to Bloomberg and most of it will be controlled by Ben Bernanke, chairman of the Federal Reserve and inheritor of Alan Greenspan's ultimate betrayal of Ayn Rand*.

The article outlines what is going on beyond the publicized bailout. Here are a few excerpts:

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.


Remember the saturation coverage 15 months ago about this? Me neither. I guess it was a matter private between our government and the banks.

Congressman Darrell Issa, a California Republican on the Oversight and Government Reform Committee, said risk is lurking in the programs that Poole thinks are safe.

“The thing that people don’t understand is it’s not how likely that the exposure becomes a reality, but what if it does?” Issa said. “There’s no transparency to it so who’s to say they’re right?”


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.


$24,000 for each member of your family including you and there is no transparency. We fought in a revolution for much, much less and now we wait and see. That'll screw us for a generation or more.

“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.”


$24,000 of your money and you don't get to know where it is going. At least they aren't using the Al Qaeda excuse (yet).

Bernanke’s Fed is responsible for $4.74 trillion of pledges, or 61 percent of the total commitment of $7.76 trillion, based on data compiled by Bloomberg concerning U.S. bailout steps started a year ago.


You better get used to being poor if this crap doesn't work.


* I know many like to crack jokes about Ayn Rand and her misguided Objectivist philosophy, but we won't be if turning our currency into a speculative enterprise only bought us a few more decades and a much larger fall. I am obviously hoping it won't, but this bailout is orders of magnitude larger than the 90s S & L bailout and nobody is sounding cheerful about it.

9 comments:

Pandabonium said...

I just want the Treasury to know that I'm too big to fail.

ladybug said...

Hey me too! Crappity Pappity...this trip down the rabbit hole just ain't this fun this time around...

Dave said...

In Germany some time ago, a wheelbarrow full of money couldn't buy a loaf of bread.

Let me explain what is really happening here.

The government is buying the business sector of the US Economy. It a is deliberate move towards socialism, and planned well in advance.

Don Snabulus said...

PB,

A couple hundred million for each of us should be sufficient.

LB,

Yep

Dave,

Whatever this is, I am firmly convinced that it cannot be explained in two sentences.

It is a good question to wonder whether injecting 7+ trillion into the economy would cause hyperinflation. It is one method of devaluing debt.

The Moody Minstrel said...

Is it a bailout or a handout?

The government is buying the business sector of the US Economy. It a is deliberate move towards socialism, and planned well in advance.

And here I thought all along it was a conservative, corporate-backed government in charge. Silly me.

(Dave, you seem to smell socialism in everything.)

Don Snabulus said...

MM,

Most people like Mint Burst Socialism, but I prefer Cinnamon Blast.

The Moody Minstrel said...

I suppose mint-basil is off the market, then?

Dave said...

Sorry, let me elaborate.

The Federal reserve is loaning seven trillion dollars to the US Government.

The US Government then turns around and buys stock in failing banks, and now motor companies.

When the government owns stock in business it has a vote in how that business is run. They can set terms for executive salaries and bonuses for instance.

And that is how America turns into a socialist nation.

Don Snabulus said...

Dave and Moody...I will cover this in a new post.