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Bailout Costs Will Top $10 Trillion

Bailout cartoonsA quick note to let everyone know that I have updated some financial figures on “The Real cost of the Bailout.” You will be stunned when you see how this thing is spiraling out of control.

The Real Cost Of The Bailout

A number of people have asked me to document how we have spent over $4 trillion in money. Turns out, the graphic below was a snapshot of bailout money and now the total has risen to almost $7 trillion. I believe the final total may top $15 trillion. Of course, I said all this months ago but it feels somewhat good to say, “I told you so” to some folks.

1. See the figures below.
2. Bloomberg estimates that the Federal Reserve has spent $3 trillion and pledged $5.7 trillion which would make the total bailout over $12 trillion.
3. I was on a radio program with Congressman Steve Pearce (R-NM) recently and he confirmed that trillions are being spent without approval of Congress.

Financial Crisis Balance Sheet

Government Entity Sum in Billions of Dollars
Federal Reserve
(TAF) Term Auction Facility 900
Discount Window Lending
Commercial Banks 99.2
Investment Banks 56.7
Loans to buy ABCP 76.5
AIG 112.5
Bear Stearns 29.5
(TSLF) Term Securities Lending Facility 225
Swap Lines 613
(MMIFF) Money Market Investor Funding Facility 540
Commercial Paper Funding Facility 1800
TALF 200
(TARP) Treasury Asset Relief Program 700
Other:
Automakers 25
(FHA) Federal Housing Administration 300
Fannie Mae/Freddie Mac 350
TARRA – The American Recovery and Reinvestment Act 787
Total $6,814.5

*References includ US National Archive, US Dept of Defense, US Bureau of Reclamation, Library of Congress, NASA, Panama Canal Authority, FDIC, Brittanica, WSJ, Time, CNN.com, and a number of other websites.