My son asked me where all that money went. I told him last I knew we really didn’t know where all of it had gone but it seemed like a lot of it was just used to pay off political friends.
He also asked me what is the most expensive thing that the federal government spends money on. I told him I thought probably entitlements, and that with the debt we’ve got now, just interest on the debt may be the biggest thing. May be more than we can ever pay off even.
I hope I wasn’t too far off. Then again, maybe it would be better if I was too far off. I’m not a real money kind of person, which I did tell him so hopefully he knows to take what I said with a grain of salt. Maybe I should look up the real answers for him.
It was recently found out over #300 billion of the money went to bail out foreign banks through AIG. So we have indirectly bailed out foreign banks when initially the issue was for the US banks to get the toxic assets (derivatives, mortgage backed securities) secured. Once again, bait and switch. As George Soros said, the financial crisis has been profitable for him.