U.S. Pledges Top 7.760.000.000.000$ to Ease Frozen Credit

[Macs.]

U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit

Nov. 24 (Bloomberg) -- The U.S. government is prepared to provide more than $7.76 trillion on behalf of American taxpayers after guaranteeing $306 billion of Citigroup Inc. debt yesterday. The pledges, amounting to half the value of everything produced in the nation last year, are intended to rescue the financial system after the credit markets seized up 15 months ago.

The unprecedented pledge of funds includes $3.18 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg.

The commitment dwarfs the plan approved by lawmakers, the Treasury Department’s $700 billion Troubled Asset Relief Program. Federal Reserve lending (http://www.bloomberg.com/apps/quote?ticker=FARBPMDW%3AIND) last week was 1,900 times the weekly average for the three years before the crisis.
Full Article: http://www.bloomberg.com/apps/news?pid=20601109&sid=an3k2rZMNgDw&refer=home

[FlintHillBilly]

Pfffft. Hope this is a good way to "bail" these people out. I guess we will have to wait and see if this really works?

What would happen if, instead of bailing these companies out, they took that massive amount of money and split it equally to all people who work? Would that just make the money worth nothing?

[Skutatos]

Any liberals still bitching about the financial cost of the Iraq war?

[FlintHillBilly]

Any liberals still bitching about the financial cost of the Iraq war?


No just how CEO's cant manage thier money along with other peoples money.

[Albatross]

Pfffft. Hope this is a good way to "bail" these people out. I guess we will have to wait and see if this really works?

What would happen if, instead of bailing these companies out, they took that massive amount of money and split it equally to all people who work? Would that just make the money worth nothing?

The "thinking" if you can call it that, is that by bailing out these companies it will lead to long term gain. If they just give handout it wont accomplish anything other than a short term savior. Teach a man to fish and all that....

No one worries about the single mothers that are going thru the holiday without jobs, when the executive staff of these companies are flying around on private jets.

[deagle]

where did all that "extra" money come from ?!?!!

will citigroup even lower rates !?!?

[LRPV]

How long will it take to repay this debt? IIRC the US didn't get full employment and recovery from the Great Depression until it entered WW2. What is going to rebuild the US economy this time?

[Kilgor]

How long will it take to repay this debt? IIRC the US didn't get full employment and recovery from the Great Depression until it entered WW2. What is going to rebuild the US economy this time?

easy credit :)

[Calanen]

With 7.6 trillion, they could pay off the national debt.

Almost. Although it could increase by 7.6 trillion more. That's 7600 Billion people.

[iLikeFlickerstick]

Any liberals still bitching about the financial cost of the Iraq war?

Dude, if someone's "bitching" about the financial costs of the war, it's doubtful they're liberal, try conservative.

[pacifist]

Any liberals still bitching about the financial cost of the Iraq war?

Don't use words you don't know the meaning of (liberal).

[RECON DOC]

With 7.6 trillion, they could pay off the national debt.

Almost. Although it could increase by 7.6 trillion more. That's 7600 Billion people.


Maybe in Australia, but the U.S. national debt is around 55 trillion.
They don't like to tell us that.

Comptroller General of the United States.
http://www.youtube.com/v/AxaZT5JS7Og

[hell]

I think we're in alot worse shape than most people realize. We can't hardly make it a week without having to "bailout" someone; the stock market only has good days following one of these announcements, then starts into another header a few days later.

All of the market heads that I keeps reading and seeing telling us that "now is a great time to buy long term", and that we're in a steep decline until Q3 2009 just makes me laugh. Check out what alot of the real experts are saying, the people that have Pulitzers in economics and don't have a direct stake in stock X or fund Y. They're all saying this is going to get alot worse, and nothing is going to rebound fast at all.

I also laugh about how the Fed apparantly has no oversight anymore; $700 billion? Nah, we'll just stretch that out to 2 trillion. Oh wait, here's several billion more to shore up AIG for another month or two. How about a few trillion to allow credit card companies to stay afloat? Give me a break, we're getting robbed in broad daylight. Just wait until some of these large entities default on the loans we've given them. Then you'll see panic on the trading floor.

[LRPV]

easy credit :)

Getting credit is still easy...paying back the credited funds might be a different proposition. Falling asset values, increasing unemployment. I'm amazed that the citizentry in the US are just sucking up this shearing of their financial futures.

[RECON DOC]

Getting credit is still easy...paying back the credited funds might be a different proposition. Falling asset values, increasing unemployment. I'm amazed that the citizentry in the US are just sucking up this shearing of their financial futures.

It boggles the mind. We should be screaming at the top of our lungs, but the apathy the American public has fallen into is too deep. Plus they've made it so complicated you can't tell which end is up. It is intentionally confusing. The Sheeple and all that. They won't stop at the wool, they're going to skin us and tan our asses as well.

[Hellfish]

It boggles the mind. We should be screaming at the top of our lungs, but the apathy the American public has fallen into is too deep. Plus they've made it so complicated you can't tell which end is up. It is intentionally confusing. The Sheeple and all that. They won't stop at the wool, they're going to skin us and tan our asses as well.
I think it's more that we just have no ****ing idea what's going on.

[RECON DOC]

I think it's more that we just have no ****ing idea what's going on.


Like I said, they've got it so we don't know wich end is up.
And we're too beaten down to challenge them on any meaningful scale.
It's like we've been hit with a stungun and they're picking our pockets while we can't move. then maxing out our credit cards.

[Romulus]

I knew 700bil wouldn't be enough for these greedy motherfu**ers. I wish more people knew how to email their Congressmen/women and senators.

We're being robbed blind.

[Gat0r]

This is absolute insanity what it taking place, there is no way we can just paper over this like other crises, that approach only set us up for this mother of all crashes. Its not constitutional and its socialistic. Bush, Obama, Paulson, Bernanke, almost everybody up in DC and the mainstream economist dont get it, maybe some do in order to bring about one world central bank and currency. It seems Obama will bust out the credit nuke and blast away. We're broke we've borrowed and spent ourselfs to oblivion and they think futher borrowing or opening up the printing presses and inflating can create real wealth and allow us to escape once again, sorry not going to happen. I have been suggesting to everybody www.europac.net Peter Schiff is the President and he's seen it all coming, they invest in foreign stocks/securities nothing linked to USD, sure the whole world is hurting now but our economy is the one with the major fundemental flaws.

[LRPV]

Like I said, they've got it so we don't know wich end is up.
And we're too beaten down to challenge them on any meaningful scale.
It's like we've been hit with a stungun and they're picking our pockets while we can't move. then maxing out our credit cards.


Well described.:) I'm no economist but throwing more credit to the undeserving and irresponsible does not bode well. Isn't there a movement in the US where members refuse to pay tax under some constitutional interpretation? p-)

[RECON DOC]

Well described.:) I'm no economist but throwing more credit to the undeserving and irresponsible does not bode well. Isn't there a movement in the US where members refuse to pay tax under some constitutional interpretation? p-)

There is and it is justified by the Constitution. 12 times the Supreme Court ruled that the 16 Ammendment gives the Federal Govt no new powers to tax. However, most courts won't allow that to be used in court. It's called the suppression of evidence,the truth, and it's been let go for so long that people accept it. Chances are they'll burn your ass good.
A very sad state of affairs.