Posted on 07/20/2009 3:09:14 PM PDT by Oldeconomybuyer
WASHINGTON — The federal government has devoted $4.7 trillion to help the financial sector through its crisis, a level of assistance equal to about one-third of the overall U.S. economy, a watchdog report said Monday.
Under the worst of circumstances, the report said, the government's maximum exposure could total nearly $24 trillion, or $80,000 for every American.
The figures are part of a tough new quarterly report to Congress from special inspector general Neil Barofsky, who accuses the Treasury Department of repeatedly failing to adopt recommendations aimed at making one component of the government financial rescue effort more accountable and transparent.
The $4.7 trillion commitment to the industry takes into account about 50 initiatives and programs set up since 2007 by the Bush and Obama administrations as well as by the Federal Reserve. Barofsky oversees one of the initiatives — the $700 billion Troubled Asset Relief Program.
Much of the government assistance is backed by collateral and Barofsky's $23.7 trillion estimate represents the gross, not net, exposure that the government could face.
Because of declining participation in short-term loan programs and because some infusions of money have been repaid, the maximum amount actually spent has declined to a current outstanding balance of $3 trillion, Barofsky said.
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“Under the worst of circumstances, the report said, the government’s maximum exposure could total nearly $24 trillion, or $80,000 for every American.”
But I , for one, will sleep better knowing that some poor banker on Wall Street will be able to keep a mansion over his kids heads, and some financial guy won’t have to give up any of his five luxury homes. (Fuld)
parsy, the sweet and generous
Oh but the federal government will cap the wages of CEO's.
A real lose/lose situation.
The government takes over and then takes over more.
WE WANT OUR COUNTRY BACK!!
At the rate government is going, soon it wont be worth taking back.
Uh oh, I didn’t think about that. However will our poor country create jobs if people like this don’t have enough money?
parsy, who is sobbing quietly to himself
They could have just given my family 63,000 dollars and that’d go a long way toward a nice house in my city. That’s if I did my math right. 4.7 trillion is 4,700,000,000,000 right? Divide that by 300,000,000 people, 4 of those people are in my family. Instead, the government does this, banks still won’t loan the money, and our economy gets destroyed as the dollar becomes worthless.
They’ll cap the wages at what, 8 figures? This was always about getting the rich excited about Socialism. And Coburn, you voted for it you sorry sack!
It’s not coming back. That way of life is Gone With The Wind.
Two points:
1. A lot of the $4.7 trillion will be retrieved, as TARP recipients pay interest on the government’s preferred shares, and eventually pay the money back.
2. The ‘total exposure’ number would probably only come into play if every mortgage became completely worthless, which means that every house in the US is worth zero dollars and zero cents.
The real crooks are either right in our faces laughing, like Dodd, Schumer & Frank, or somewhere in Gonesville. Or dead.
Under Cap ‘n Tax, all 0bama or his minion has to do is declare a house worthless—since, for example, it isn’t up to the Green Czar’s code.
Of course, that’s where backsheesh comes in handy.
They could have just left well enough alone, saved trillions and let the economy take it's course.
Europe is on the road to recouping already.
They aren't trying to change to socialism presently however.
Does this include the bailouts by the Federal Reserve Board?
Sorry. But remember the saying, “Owe the bank 100K and they own you. Owe the bank a million and you own the bank.” Same thing. Just replace million with trillions.
The US is now the property of Goldman Sachs, JPMorgan Chase, and BofA thanks to trillions in failed bets by them which made them insolvent. The continous bailouts of these companies means they now own the country.
$23.7 trillion??? -- oh, that's not bad. I thought it might be 3 or 4 gazillion dollars or worse. I'll sleep better tonight now.
Excellent point!
If the terrorists still want to end the US way of life they better hurry up, Obama isn’t leaving much left to destroy.
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