A couple months ago, I reported that the $700 billion bailout was likely to cost at least $2 trillion. So, with the costs that come with that large of a debt (notably interest costs), I wonder what sort of actual costs will result from a reported $1 trillion bailout plan. Because that’s where we seem to be headed.
Calls are mounting for a truly massive bailout. Honestly, though, I’m not sure why we’re even continuing the charade that there is a spending cap at all, and specific plans for the money. The government is trying its best to look as though …read more

One of the groups that is likely to see job security as the economic and financial crisis continues is lobbyists. Why? Because interest groups always need someone to go to Washington and ask for money. And with more than $700 billion up for grabs (it’s going to go over that limit — you know it will), it is no surprise that everyone wants a piece of the action.
From regional banks to the auto industry to foreign banks to hedge funds to AIG, everyone wants some of that bailout pie. And why not? If the past two months is any indication, …read more

This morning, I was listening to the Diane Ream show on NPR while taking my son to the library. The subject was the forthcoming $700 billion bailout bill in the House, and how it is expected to loosen credit markets. I heard one of the guests say something similar to this: “If people can’t buy things on credit, the economy comes to a grinding halt.”
This was the first time I heard someone state this truth so baldly. But what has me worried is that now we’re treating this as something that’s no big deal. We *need* credit — and by …read more

Somehow, this doesn’t make me feel any better about the $700 billion bailout just passed by the Senate. Do you feel better about the Senate bailout package?

I had to laugh this morning when I saw this over at The Onion. I enjoy some satire, and the story of a wealthy teenager who “nearly experiences consequence” for some reckless actions made me laugh.
I’m fairly certain the story is a jab at the bailout, actions of wealthy investment banks and the quick moves the government is making to “save” the wayward financial institutions from what has happened. Here is an excerpt from the story on The Onion:
“If he had been driving just 5 mph faster, or if his parents hadn’t had the influence to keep the matter out …read more

I have a few people that email me every now and again wondering about the state of the U.S. dollar. These are folks that are interested in it for investing purposes, because they expect to travel overseas in the next year or so, or are just concerned about the dollar’s standing in the world.
Lately, I’ve been getting questions about how the $700 billion bailout is likely to affect the U.S. dollar. In the near term, the bailout has been helpful, since the dollar has been rallying on the assumption that the economy is likely to recover as a result of …read more

It’s a good thing that members of Congress are slowing the passage of the $700 billion bailout. (Dems want to add provisions to help “regular” folk, and conservative GOP types think the bailout is downright irresponsible.) The reason why is simple: This proposal, as submitted by the Treasury Department, is scary.
Yes, scary.
I’ve read on both Taxgirl and at My Two Dollars that the language of the proposal does not allow for any oversight of the Secretary of the Treasury as he doles out taxpayer funds to help save Wall Street firms. Here are some of the basics of what this …read more

On Saturday, I painstakingly wrote out a couple of blog posts about the $700 billion bailout on my mobile from Blogworld in Las Vegas. I was very disappointed that only my short blip on the national debt managed to be saved.
Since Saturday, of course, plenty of other people have been writing about the financial crisis and the $700 billion bailout. (Note: At a session I attended on financial blogs at Blogworld, at least one panelist said that the final cost of this situation would likely be $2 to $3 trillion.)
So, because I’m behind (thanks, Shanna, for taking me to the …read more