Total Exposure Of The US Taxpayer Thanks To Bank Bailouts Reaches $24 Trillion
Remember that little $700 billion bailout slush fund we gave the Treasury Department and the Federal Reserve under Bush and Obama? The politicians have taken that money and turned it into $24 trillion in gross exposure to debt for the taxpayers.
Or about $80,000 per American citizen.
WASHINGTON (AP) - The watchdog overseeing the federal government financial bailout says the government’s maximum exposure to financial institutions since 2007 could total nearly $24 trillion, or about $80,000 for every American.
The whopping amount compiled by the inspector general for the $700 billion Troubled Asset Relief Program takes into account about 50 initiatives and programs set up by the Bush and Obama administrations as well as by the Federal Reserve.
Many of the programs are backed by collateral and the $23.7 trillion represents the gross, not net, exposure that the government could face. No one has suggested that the full amount, in fact, will be used.
Of course, Americans will (hopefully) never actually have to be on the hook for that full amount. One would hope anyway. But can anyone really argue that it’s wise to even put the taxpayers at risk of it?
And by the way, Congress’ original appropriation here was $700 billion. Now we’ve got $23.7 million in potential liabilities?
That’s unacceptable. Hell, that’s unconstitutional.
