Tuesday, December 23, 2008

Follow the Bailout money: $ 8.5 TRILLION and counting

"Diane Lim Rogers, chief economist with the Concord Coalition, says her biggest fear is not hyperinflation and the social unrest it could unleash. 'I'm more worried about a lot of federal dollars being committed and not having much to show for it. My worst fear is we are leaving our children with a huge debt burden and not much left to pay it back.'"

The federal government committed an additional $800 billion to two new loan programs on Tuesday, bringing its cumulative commitment to financial rescue initiatives to a staggering $8.5 trillion, according to Bloomberg News.
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End result of federal rescue programs?

Inflation
Recovery
Crippling debt

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That sum represents almost 60 percent of the nation's estimated gross domestic product.

Given the unprecedented size and complexity of these programs and the fact that many have never been tried before, it's impossible to predict how much they will cost taxpayers. The final cost won't be known for many years.

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