That is what TARP might cost us:
Some numbers are so large they simply become incomprehensible.
Remember when costs of the bailout were projected to be $0.5 Trillion, then $1 Trillion, then $3 Trillion.
Now, Neil Barofsky, special inspector general for the Treasury’s Troubled Asset Relief Program says U.S. Rescue May Reach $23.7 Trillion.
U.S. taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bail out financial companies, said Neil Barofsky, special inspector general for the Treasury’s Troubled Asset Relief Program.
The Treasury’s $700 billion bank-investment program represents a fraction of all federal support to resuscitate the U.S. financial system, including $6.8 trillion in aid offered by the Federal Reserve, Barofsky said in a report released today.
“TARP has evolved into a program of unprecedented scope, scale and complexity,” Barofsky said in testimony prepared for a hearing tomorrow before the House Committee on Oversight and Government Reform.
And if anyone is wondering why the financial institutions showed a profit this past quarter which is making Obamaniacs go nuts thinking there’s a recovery going on – well, when you dump that much money in to an industry, if you don’t show a profit then you’re pretty darned stupid. Give me a billion dollars next week and I’ll show you that Noonan, Inc. had increased profits on a grand scale. Now, the liberal/socialist theory here is that now that the banks have all this cash they’ll start to lend and otherwise invest it and, presto!, we’ll have an economic recovery. This isn’t just incorrect, its mind-bogglingly stupidly wrong, wrong, WRONG!
The money the banks got came out of some other part of the economy – what the Obama gives with one hands, the Obama takes with the other. We’d be lucky if it were a wash, but given the higher interest we’re going to have to pay on debt and the depreciation of our currency, we’re in for quite a large loss on the deal. Obama can pump up this bubble for a quarter or two, but eventually the bill has to be paid – and if we don’t find several trillion dollars under the White House mattress, it will have to be paid in lost jobs, lower wages, higher taxes, higher interest rate and inflation.
Welcome back, Carterism.
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