How Much is that Bailout in the Window?
The bailout is ballooning. Imagine that. Some estimates now put the total bill at over 8 trillion dollars.
The $8.5 trillion includes the $700 billion bank and Wall Street bailout; federal takeovers of Fannie Mae and Freddie Mac, individualized bailouts for Citigroup Inc. (NYSE: C) and American International Group Inc. (NYSE: AIG); and various cash infusions into financial and lending markets by the Fed. The $700 billion includes federal equity buys into Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM) and other financial institutions.
The U.S. government is prepared to provide more than $7.76 trillion on behalf of American taxpayers after guaranteeing $306 billion of Citigroup Inc. debt yesterday. The pledges, amounting to half the value of everything produced in the nation last year, are intended to rescue the financial system after the credit markets seized up 15 months ago.