Let’s scribble on the back of our proverbial envelope for a moment:
$700 billion bailout package for Wall Street$438 billion projected deficit in the federal budget for FY 2008$200 billion for Fannie Mae and Freddie Mac$150 billion in rebate checks under the guise of “stimulus”$85 billion for AIG$29 billion for Bear Stearns
Hmnn… $1,602 billion…. that’s quite a bill for the year… not to mention the nearly $1.6 trillion in Treasury swaps and short-term paper the Federal Reserve has lent out during its auction facilities.
Who’s going to pay for all this?
The national debt ceiling will have to be raised for the second time in as many months to accommodate the request… this time to $11.3 trillion… boosting the national debt to over 70% of GDP. The highest the national debt got during the Great Depression was 44% of GDP.
$700 billion bailout package for Wall Street$438 billion projected deficit in the federal budget for FY 2008$200 billion for Fannie Mae and Freddie Mac$150 billion in rebate checks under the guise of “stimulus”$85 billion for AIG$29 billion for Bear Stearns
Hmnn… $1,602 billion…. that’s quite a bill for the year… not to mention the nearly $1.6 trillion in Treasury swaps and short-term paper the Federal Reserve has lent out during its auction facilities.
Who’s going to pay for all this?
The national debt ceiling will have to be raised for the second time in as many months to accommodate the request… this time to $11.3 trillion… boosting the national debt to over 70% of GDP. The highest the national debt got during the Great Depression was 44% of GDP.
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