Posted on 07/21/2009 1:03:03 PM PDT by Red Steel
Holy Toledo! More than the entire cost of all wars the U.S. has ever fought. More than the New Deal. More than the cost of sending a man to the moon. Almost twice the yearly gross domestic product of the entire United States of America.
That’s the possible cost of the 50 bailout programs to which the U.S. is now committed — $23.7 trillion — according to Neil Barofsky, special inspector general for the Trouble Asset Relief Program (TARP). The ranking Republican on the House Oversight and Government Reform Committee, Darrell Issa of California, points out that spending a billion dollars a day back to the birth of Christ would have added up to only $1 trillion. Barofsky’s report is expected to be delivered today to the House oversight panel.
If Congress ever needed a bucket of cold water on its over-heated passion for spending, Barofsky’s warning should provide it. Some Democrats representing districts where people earn enough to feel threatened by President Obama’s massive new spending proposals
(Excerpt) Read more at blogs.ajc.com ...
>>> You seem to be implying that all this obama and dem Congress spending is Bush’s idea. I disagree with many things he did but WTF are you talking about?
I’m talking about things like:
Fannie and Freddie Bailouts:
September 7, 2008 - The director of the Federal Housing Finance Agency (FHFA), James B. Lockhart III, announced his decision to place two Government sponsored enterprises (GSEs), Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation), into conservatorship run by the FHFA.
TALF:
November 25, 2008- The Federal Reserve announced the Term Asset Liquidity Facility to support the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration (SBA). Under the TALF, the Federal Reserve Bank of New York (FRBNY) will lend up to $1 trillion (originally $200 billion) on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans. As TALF money does not originate from the US Treasury, the program does not require congressional approval to disburse funds.
CAP:
October 14, 2008 - Treasury announces TARP Capital Purchase Program to ensure the continued ability of U.S. financial institutions to lend to creditworthy borrowers in the face of a weaker than expected economic environment and
larger than expected potential losses.
Your own statement says no more than $200 billion. What do want to add?
>>>FM/FM were taken over by the Federal Reserve. TALF is also a FR program.
Ok, but the IG’s report includes these in the $24T number. Are you suggesting that they should be excluded? And if you are letting GWB off the hook because these are Federal Reserve programs, how does this then become Obama’s responsibility?
What do you want to add? 200 billion and 23+ trillion are a long ways off.
For starters, 24T is the max the assorted programs COULD spend. The current total is about 3T IIRC.
2nd, I’m not hanging it all on Obama, but it is his mess now...not GWB’s. Obama’s policiies have worsened the situation, not helped. Quit giving Dems cover by trying to lay blame on George W, especially undeserved.
3rd, if all 24T were spent, no one is going to be worrying about it...they will be too busy trying to find some food.
>>>What do you want to add? 200 billion and 23+ trillion are a long ways off.
TARP is $3T potential, FDIC actions are another $2.3T.
The Federal Reserve’s $2 trillion balance sheet (which grew from approximately $900 billion prior to the financial crisis to a peak of nearly $2.3 trillion in December 2008),however, does not reflect the true potential amount of support the Federal Reserve has provided to those programs,which is estimated to be at least $6.8T.
The newly created Federal Housing Finance Agency (“FHFA”) — under whose auspices fall the Government-Sponsored Enterprises(“GSEs”) such as Fannie Mae, Freddie Mac, and Federal Home Loan Banks(“FHLBs”) — has effectively provided more than $6 trillion in gross potential
support.
Meanwhile, Treasury itself has programs outside of those authorized under the Emergency Economic Stabilization Act (“EESA”), and has supplied potential support beyond TARP of approximately $4.4 trillion.
Your looking at 12 trillion. Your numbers. Not double. Half of which is FHA. They don’t seem to be guaranteeing too many loans these days.
>>>For starters, 24T is the max the assorted programs COULD spend. The current total is about 3T IIRC.
As is stated clearly in the IG’s report. Of course that doesn’t make as nice a headline and the $3T number doesn’t even show up in the original blog posting.
>>>I’m not hanging it all on Obama, but it is his mess now...not GWB’s. Obama’s policiies have worsened the situation, not helped. Quit giving Dems cover by trying to lay blame on George W, especially undeserved.
I agree it is his mess now, but we started down this road long before 1/20/09.
>>>3rd, if all 24T were spent, no one is going to be worrying about it...they will be too busy trying to find some food.
Agreed. If all of the collateral goes to zero, then it’s over. But then why does everyone put so much emphasis on the $23T, as opposed to $3T? It’s not like $3T is chump change.
How can you morally defend these numbers?
>>>Your looking at 12 trillion. Your numbers. Not double. Half of which is FHA. They don’t seem to be guaranteeing too many loans these days.
You apprarently missed some numbers:
Federal Reserve - $6.8T
FDIC - $2.3T
TARP - $3.0T
Treasury — Non-TARP - $4.4T
Other: FHFA, NCUA, GNMA, FHA, VA - $7.2T
Total: $23.7T
>>>How can you morally defend these numbers?
Which numbers?
You haven’t disagreed with the spending at all, as anyone who can scroll through the thread can attest to.
>>>You haven’t peeped a word of disagreeance through the entire thread.
No I haven’t peeped a word of disagreeance. Nor have I in any way defended them. I merely have been pointing out the fact that many of these programs were in place prior ro 1/20/09 and that the actual dollars allocated to date are $3T. Several of these programs have been successful in returning liquidity to the market - Commercial Paper Funding Facility, Money Market Funding Facility are examples.
The programs have changed, you have ignored that. The taxpayer cost you seem to care nothing about. I’ll divert to post #34 for clarification.
Agreed, 3T certainly isn’t chump change...it is staggering.
As for the 24T number, it’s just like unfunded federal liabilities in general(I believe the mid 50T’s is the latest estimate). Great for a headline, but really means nothing.
It’s a typical low estimate IMO.
We have a good deal of comfort about the capital cushions at these firms at the moment.” — Christopher Cox, chairman of the Securities and Exchange Commission, March 11, 2008
Bear Stearns etc.
I took all my money out of the markets in 2005. I think the casino is still crooked.
That’s a fair view. Additional information helps.
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