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Remember, It's Only Money!

So far Uncle Sam has spent, lent, or created around $13 trillion to bail out most everyone on Wall Street, in the banking sector, part of the housing industry, and associated with the automakers, as well as a number of assorted others.  But we are  just getting started.  We might have another $11 trillion to go.

Reports ABC News:

"The total potential federal government support could reach up to $23.7 trillion," says Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, in a new report obtained Monday by ABC News on the government's efforts to fix the financial system.

Yes, $23.7 trillion.

"The potential financial commitment the American taxpayers could be responsible for is of a size and scope that isn't even imaginable," said Rep. Darrell Issa, R-Calif., ranking member on the House Oversight and Government Reform Committee. "If you spent a million dollars a day going back to the birth of Christ, that wouldn't even come close to just $1 trillion -- $23.7 trillion is a staggering figure."

Granted, Barofsky is not saying that the government will definitely spend that much money. He is saying that potentially, it could.

At present, the government has about 50 different programs to fight the current recession, including programs to bail out ailing banks and automakers, boost lending and beat back the housing crisis.

Barofsky's estimate means that if each federal agency spends the maximum potential amount involved in these 50 different initiatives -- if the Federal Reserve ends up spending $6.8 trillion on its programs. If the Treasury Department spends $4.4 trillion, if the Federal Deposit Insurance Corporation spends $2.3 trillion, and so on -- then the numbers add up to a total of $23.7 trillion.

Well, don't worry, be happy.  After all, it's only money!

(H/t to David Boaz at the Cato Institute.)

View all comments (4) | Leave a comment

Terry| 7.25.09 @ 4:25PM

Someone ought to investigate the Treasury's transactions and dealings in recent months. How much money has been deployed in the country's securities markets?

Pingback| 7.25.09 @ 10:41PM

The American Spectator : AmSpecBlog : Remember, It's Only Money! | Money Blog : 10 Do links to this page. Here’s an excerpt:

…much money . He is saying that potentially, it could. At present, the government has about 50 different programs to fight the current recession, … Read the rest here: The American Spectator : AmSpecBlog : Remember, It's Only Money! Leave a Reply Name (required) Mail (will not be published) (required) Website Tag Cloud accounting advertising archives article banking business credit currency trading debt…

Margaret| 8.8.09 @ 3:09AM

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

Margaret

http://grantfoundation.net

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More Blog Posts by Doug Bandow

http://spectator.org/blog/2009/07/25/remember-its-only-money
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