There are two, ever so very vocal camps on the issue of financial bailouts. There is the Paulson-Bernanke Camp, which is throwing money around like so much confetti and there is the Everyone-Else -Outside-Washington Camp that is watching its tax dollars go down the black hole that is Washington politics. Now, after about a trillion dollars worth of various bailout and stimulus packages, the Fed is pledging more than $7.4 trillion dollars to get credit flowing once again.
What $7.4 Trillion Looks Like
To give you some perspective on the numbers under discussion, according to Bloomberg: “The money that’s been pledged is equivalent to $24,000 for every man, woman and child in the country. It’s nine times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office figures. It could pay off more than half the country’s mortgages.”
This is a Hail Mary pass, a desperation move since nothing else... [Read Full Article]