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Here is today's quiz. If you were given $1,000,000 to spend each day, how many days would it take you to spend $12.2 trillion dollars? You are probably wondering where the number $12.2 trillion came from? Well, this is the amount of money the government has committed for economic recovery.
Some of the monies can be accounted for but its still a big mystery where the rest went. So far we know this:
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The Treasury and the Fed committed $3 trillion dollars to guarantee and buy illiquid assets of some funds to help them meet their obligations.
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The Federal Reserve is the buyer of last resort for $1.6 trillion dollars of commercial paper.
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The Treasury and the Fed have committed $1.5 trillion dollars to buy debt and mortgage backed securities from Fannie Mae (NYSE: FNM), Freddie Mac (NYSE: FRE) and Ginnie Mae.
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$900 billion dollars is committed for the Term Asset Backed Securities Loan Facility (TALF). The TALF program will provide loans and accept securities backed by consumer and small business loans as collateral.
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The Treasury has committed $900 billion dollars to seek private investors who will buy nonperforming assets from banks. Both public and private funds will be used in these transactions.
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We know the $700 billion dollars was spent on the Troubled Asset Relief Program (TARP) to bail out the banks, the auto companies and insurance companies.
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$400 billion is earmarked for Fannie Mae and Freddie Mac to cover their losses.
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The Fed has committed $58 billion dollars to cover the losses of AIG.
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$29 billion dollars was used to buy distressed assets from Bear Stearns and help JP Morgan Chase & Co. buy Bear Stearns.
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The government spent $4 billion dollars to buy assets from the Reserve U.S. government Fund. This fund is not a government fund buy a private one. Why this fund was bailed out is a mystery.
So now there you have it. You now know where the government will spend $12.2 trillion dollars of your taxpayer money. Isn't that just dandy? Would you believe that throughout this calamity, just four of our biggest banks control 90% of the derivatives market. They are JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C) and Goldman Sachs (NYSE: GS). This is where all the toxic assets are buried. By and large it was rampant speculation and unreasonable leveraging in the derivatives markets that brought our financial house down.
By the way have you figured out the answer to today's quiz?
Should the Federal Reserve's spending be reined in?
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Reader Comments (Page 1 of 1)
6-19-2009 @ 6:59PM
j0nd4m4n said...
Wow:
Put things into perspective:
That is 268,963,957 pounds of money in 100 dollar bills
which is 134,482 tons
which is the wight of almost 598 statue of liberty
more than 3 st. Louis Arches
40% the weight of empire state building
I am so happy we invented computer, otherwise, i think it would be impossible for the government to "INVEST" that much money that quick.
:)
6-19-2009 @ 8:39PM
Sales said...
3500 yrs approx
6-19-2009 @ 10:16PM
Brian Faulkner said...
Thhe answer is: 12,200,000,000,000 divided by 1,000,000 equals 12,000,000 days divided by 365 days per year equals 32,876 years.
6-20-2009 @ 3:02PM
steve said...
That will be new money because there is no possible way to get it through taxes. That means one thing. Hyper-inflation. Get ready. Too bad no one remembers post-WWI Germany. If they did they would have a crystal ball into the future of the dollar. I think that may be the plan. Collapse the dollar and that way you can create a new currency and distribute it how you see fit. The only problem with that is that any paper money is only valuable if all parties few it as such. There is not going to be an educated person with half a brain that will trust the Obama buck.
6-20-2009 @ 2:49AM
rpbarbati said...
Incredibly enough, this means that every person (both children and adults) could have received $39,400,000.00 - yes, that's right, each and every being in the U.S. could have been given 39 million dollars with this level of spending.
That means that even a two year old could have purchased at least 20 homes outright, with hard cold cash - I wonder if that would have helped stimulate the economy?
We are all being sold a bill of goods that is going to put us all in chains by the time it is over. This makes me sick - obviously, washington has nothing to do with the U.S. citizens anymore other than fleecing the next 3 or 4 generations in order to put them in bondage from birth. Everyone on the hill needs to be hanged for treason - and I don't say that laughingly.
6-20-2009 @ 4:02AM
n8 said...
I think rpbarbati is off by a factor of 1,000. 12.2 trillion/300 million is only 40,000 not 40 million
6-20-2009 @ 7:42AM
P McBride said...
And the answer to the question: Should the federal reserve be reined in? Yes. And not only should they be reined in, a future congress and senate is going to have to pass some sort of legislation that makes it mandatory for them to get congressional approval if they plan to print money or spend as they have under this administration (with only the man in the white house dictating what to do ....... and he hasn't even run a lemonaide stand before this, so this is not a good thing).
8-13-2009 @ 10:32PM
Tech said...
Yes but it more like 24 trillion not the twelve according to Bloomburg and that's around $80,000.00 per citizen. Now if they had mailed me and my family of three we'd have $240,000.00 buckeroos! That would "stimulate the "economy". Of course they want CONTROL not us having freedom and money so they are breaking us down and stealing everything and will have their global order run by a few ghouls and us "chipped" in about 20 years or so. All too real-been to a Walmart lately? Used a Chase Visa? Good anywhere in the world as cash. The "governments" are merely fronts they pay off like in DC with the THIRTY FOUR THOUSAND LOBBYISTS. Fun and games like 911, blowing Kennedy's brains out, taking out the economy, Wall St. and installing GW Bush and Obama. Read up on David Rockefeller, the FED/IRS scam, JP Morgan or go back to John D. Rockefeller and how he really took over 90% of the oil business.