The $2 Trillion Bailout

I'm pretty sure that we're all familiar with the Wall Street Bailout by now. Many of us took the time and effort to contact "our" Congressional members and express our opinion on their actions, either for or against. Many folks have the idea that the $800 Billion+ bill that was passed was somehow the end of the matter. Shoot, the tally isn't even that low, we could only wish for it to be in that range. Nope. Congress, the Treasury and the Bush White House have saddled up with a new debt that is looking to be over $2 Trillion dollars, since this whole Wall Street debacle started.

From Reuters:

* Up to $50 billion from the Great Depression-era Exchange Stabilization Fund to guarantee principal in money market mutual funds to provide the same confidence that consumers have in federally insured bank deposits.

* The Fed committed to make unspecified discount window loans to financial institutions to finance the purchase of assets from money market funds to aid redemptions.

* At least $10 billion in Treasury direct purchases of mortgage-backed securities in September. In doubling the program on Friday, the Treasury said it may purchase even more in the months ahead.

* Up to $144 billion in additional MBS purchases by Fannie Mae and Freddie Mac. The Treasury announced they would increase purchases up to their newly expanded investment portfolio limits of $850 billion each. On July 30, the Fannie portfolio stood at $758.1 billion with Freddie's at $798.2 billion.

* $85 billion loan for AIG, which would give the Federal government a 79.9 percent stake and avoid a bankruptcy filing for the embattled insurer. AIG management will be dismissed.

* At least $87 billion in repayments to JPMorgan Chase & Co for providing financing to underpin trades with units of bankrupt investment bank Lehman Brothers Holdings, Inc. U.S. Treasury Secretary Henry Paulson said over the weekend he was adamant that public funds not be used to rescue the firm.

* $200 billion for Fannie Mae and Freddie Mac. The Treasury will inject up to $100 billion into each institution by purchasing preferred stock to shore up their capital as needed. The deal puts the two housing finance firms under government control.

* $300 billion for the Federal Housing Administration to refinance failing mortgage into new, reduced-principal loans with a federal guarantee, passed as part of a broad housing rescue bill.

* $4 billion in grants to local communities to help them buy and repair homes abandoned due to mortgage foreclosures.

* $29 billion in financing for JPMorgan Chase's government-brokered buyout of Bear Stearns & Co in March. The Fed agreed to take $30 billion in questionable Bear assets as collateral, making JPMorgan liable for the first $1 billion in losses, while agreeing to shoulder any further losses.

* At least $200 billion of currently outstanding loans to banks issued through the Fed's Term Auction Facility, which was recently expanded to allow for longer loans of 84 days alongside the previous 28-day credits.

Add in the over $800 Billion they saddled us with the other day and we're looking at some serious money. About $18,000 per household, in the US. That doesn't even include the current national debt or the numerous unfunded mandates and programs like Medicare and Social Security. Also add in the fact that California is also lining up at the trough to be bailed out, too. Yep, they've really done us in this time and they'll likely be back real soon for more. We're going to be on the hook for many, many trillions of dollars, down the road. Our childrens chilren will still be paying for the things that today's politicians have wrought.

Their bailout plan isn't even likely to do what they intend for it to do, but we'll still be handed the bill. Socialism will be rammed down our throats and whomever is elected will likely make it worse. So hold onto your hats, folks. Your wallets are already gone and everything else is swirling towards the toilet. We can thank "our" politicians for what's coming at us. Their years of fiscal irresponsibility will come home to roost at our houses, they will shield themselves, as they are currently doing, within their halls of power. Serfdom has reared its ugly head, once again.

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Bailout, Politics, Libertarian