Sent to DS from Joel:
FOR IMMEDIATE RELEASE
November 26, 2008
CONTACT: The Real News Network
Taruna Godric, 416-916-5202 ext. 414
Bailout costs $8.5 trillion
US Federal Government has pledged $8.56 trillion in economic bailout for financial institutions so far
On Tuesday the U.S. government announced another $800 billion injection in hopes of bolstering the frozen credit markets and devastated housing markets. The $800 billion is an addition to 7.76 trillion dollars that Bloomberg reports has already been contributed to the bail out attempt. The running total so far for this effort is over 8.5 trillion dollars or the equivalent of roughly 26 thousand dollars for every man, woman and child in the United States.
The Real News spoke to Journalist and author Nomi Prins to discuss where this money is coming from. She says “it’s coming from two sources which ultimately comes back to us the tax payer.” These two sources are the Federal Reserve which is using undisclosed bonds for collateral leading to a short fall of money coming in to the treasury department, and national debt interest.
Prins touches on the fact that until the potential asset losses within the system are disclosed, no effective progress can be made, “In the end…the simple infusions of capital…will not work unless it’s done to the amount of potential loss that is in the system”.