Tuesday, December 02, 2008

$8.5 trillion of our tax dollars to be used to "rescue" the U.S. financial system

700 billion for the Wall Street bail-out. Another 200 billion there, and then on another given day 800 billion more committed. If you’re like me, you may be finding it hard to keep track of how many billions or trillions the government is spending to “rescue” us.

According to Bloomberg News, over the past 15 months, the US government has pledged anywhere from $7.7 trillion to 8.5 trillion (and counting!) to rescue the financial system! To say the least, “The commitment dwarfs the Treasury Department’s $700 billion Troubled Asset Relief Program.”

Most of the money, about $5.5 trillion, comes from the Federal Reserve, which as an independent entity does not even need congressional approval.

So much for transparency and oversight. So-called regulators continue to commit far more money than Congress agreed to, while refusing to disclose loan recipients or reveal the collateral they are taking in return.

The San Francisco Chronicle writes “Given the unprecedented size and complexity of these programs and the fact that many have never been tried before, it's impossible to predict how much they will cost taxpayers. The final cost won't be known for many years.”

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