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

We all knew that we would have to borrow more money to fund the $700 billion bailout (that will really cost around $2 trillion or $3 trillion). But it’s not pleasant to see the numbers out there in black and white. (Or red. Blood red. As the case may be.)
$550 billion
That’s how much the government says it is borrowing in this quarter in order to meet the gargantuan obligations it has given itself. The first quarter of next year, reports CNN Money, is expected to see another $368 billion in borrowing.
It doesn’t matter who wins tomorrow’s election: Higher taxes are …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

The big news from the weekend is that the Senate passed the housing relief bill that has been wending its way through Congress for the past few weeks. And President Bush has promised to sign the bill into law, meaning that soon some folks will see some relief.
But the bill does more than simply bail out the participants in the mortgage market mess. Others may benefit as well. Here’s who will benefit from the housing relief bill:

Fannie Mae and Freddie Mac. These two government sponsored enterprises (GSEs) are getting the ultimate bail out. The housing relief bill authorizes the government …read more