Tuesday, 10 February 2009

Yet another bank clean up is launched

With each passing bailout, the numbers get larger and more alarming. Is anyone in the US government bothering to add up all these new public sector liabilities?

US Treasury Secretary Timothy Geithner has unveiled a comprehensive bank bail-out plan worth at least $1.5 trillion (£1.02 trillion). Under the plan, the size of a key Federal Reserve lending program will be expanded to $1 trillion from $200bn.

In addition, a public-private investment fund of $500bn will be created to absorb banks' toxic assets and could be expanded to $1 trillion.


Irrational Doomsday Blog said...

Last time I checked Bloomberg has it at $9.7 Trillion. Plus about $5 Trillion in Fannie Mae type debt- which is in a logical no-mans land as far as who is guaranteeing it. Plus this. Plus the stimulus.


Bob said...

Our government knows we are in more trouble than they will admit. Thus all the money being thrown at the problem. They don't mention Credit Default Swaps(Insurance) as being the biggest problem. I have seen estimates of 855 trillion dollars worth on the books, somewhere, in our financial institutions maybe throughout the world. Its just insane. You can image why they aren’t saying anything and throwing money at the problem...just hoping the problem disappears.