the LYNCH report

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Fed Takes Another $800 bn From Taxpayers…

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The US Federal Reserve has committed yet more money to the so-called “bailout” of the US economy – this despite no hard evidence that credit markets are, in fact, tightening (as we reported here). $800,000,000,000. more. house-with-foreclosure-sign

According to Bloomberg¹, $600 bn will be used to purchase toxic assets of Freddie, Fannie et al., the very entities without whose existence the housing slump could not have occurred.

Another $200 bn will go to “support” consumer and small-business loans.

What does that mean for the beleaguered US taxpayers? Well, as we previously wrote, the original $700 bn TARP package, coupled with the attempted bailouts of Bear Stearns and AIG, already had taxpayers on the hook for $7,546 each. This adds another $5,954 to each taxpayer’s obligation, for a grand total (to date) of a staggering $13,500.

That’s a bill which, of course, will come due for taxpayer at some later date. There are no reports of any discussions on that part of the equation…

Written by westcoastsuccess

November 25, 2008 at 7:46 am

2 Responses

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  1. […] of foreclosure; the value of the money borrowed to finance the so-called “bailouts” (see here for average cost per taxpayer (opens in new window)) would be reduced, and the current threat of deflation would be […]

  2. […] by paid by the US taxpayer: $6,2,36 per taxpayer, to be precise. That, of course, is on top of the $13,500 each taxpayer is already on the hook for via the original TARP money, the bailout of AIG, Lehman, et al. New […]


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