When Did We Agree to This?

Is it just me, or are people throwing around some mind-bogglingly large numbers without even thinking twice about it?

Otherwise, I know my memory is fading with age, but when did we agree to commit a sum equivalent to twice the size of our economy, as the Wall Street Journal reports in "Government Tab for Crisis Could Hit $23.7 Trillion, Official Says," to bail out the banks -- and the banksters -- who got us here to begin with?

Government support aimed at cushioning the effects of the financial crisis in the U.S. could reach $23.7 trillion, a special inspector general overseeing U.S. bailout efforts planned to tell Congress on Tuesday.

In prepared testimony for a hearing of the House Committee on Oversight and Government Reform, Special Inspector General Neil Barofsky said the figure included spending and commitments for several agencies that have implemented programs aimed at supporting the economy and the U.S. financial system.

"TARP does not function in a vacuum," he said, referring to the government's $700 billion Troubled Asset Relief Program--its most visible effort to counter the financial meltdown.

The top Republican on the oversight committee, Rep. Darrell Issa of California, blasted the figure provided by Barofsky, saying "If you spent a million dollars a day going back to the birth of Christ, that wouldn't even come close to just $1 trillion--$23.7 trillion is a staggering figure."

Mr. Barofsky provided a breakdown of the government's TARP expenditures in his testimony, saying Treasury has disbursed $441 billion of the nearly $700 billion authorized under TARP legislation.

The government has called the programs investments, but officials have conceded that some of those investments--such as $2.3 billion provided to CIT Group Inc., which is seeking last-minute rescue financing from bondholders--could result in losses for taxpayers.

All I can say is that by the time Washington is done destroying "fixing" the U.S. economy, our "leaders" will probably be needing lessons in fundraising from the young man featured in the following CNN report, "Ohio Boy Sells His Toys to Help His Family":

An 11-year-old Ohio boy is helping ease his family's financial burdens, one toy at a time.

Zach McGuire is selling his toys to raise money for his family, which like others across the country, has bills piling up and a home in jeopardy.

The youth said the idea came up during a conversation with his father.

"You can't live in toys, or eat toys," he told CNN television affiliate WNWO. "Even though they are fun, you don't need them."

Zach plans to use the proceeds for a good cause: helping his unemployed father.

Tom McGuire, a licensed contractor in Toledo, Ohio, has not had a job since December. The economy is partly to blame, he said, adding that he did a job last summer and never got paid.

As the general contractor on the job, he said, he was financially liable for materials and the work of two subcontractors. "I'm out $30,000," McGuire said.

The father said he is looking for work and is not relying on money from his son's toy sales. But he appreciates his effort.

"Zach has a big, giving heart," McGuire said. "He came to me with this idea. He wants to contribute."  Watch how Zach McGuire is helping his family »

It's not the first time Zach has helped those in need. In 2005, he sold Kool-Aid for victims of Hurricane Katrina and raised $400. A few years later, it was "Cocoa for California," which he sold to help wildfire victims.

"I am very proud of him," McGuire told WNWO. "He is an 11-year-old boy not living the life of an 11-year-old."

Zach said everyone can do something.

"Even though they don't feel like they could do anything, they could do a Kool-Aid stand, like me," he said. "It's what you're doing that matters and how you're helping people."

Comments

[Rocky]

Maybe we can sell our national parks to the Chinese? How about the Statue of Liberty? The Golden Gate National Recreation Area in San Francisco ought to go for at least a few billion if it is made exempt from local zoning control.

[Jr Deputy Accountant]

Hey Rocky, if that doesn't work maybe we'll get to sell our kidneys to China in that awesome Obamacare scheme?

RAD!

[Alexandra]

No, I don't think our leaders, business and political will be poor after done 'fixing'.
Just ask yourself where all this money, all the 24trn, is going. But I think its easier to think that they are bumbling fools than to face up to the alternative scenario.
Ignorance is bliss.

[Riddick]

I would put Zach in charge of the FED and Treasury and place the current corrupt morons out on the highways patching potholes. End result? Economic recovery within a year.

[Wil Martindale]

It will take about $140 trillion to bail out the flaming derivatives Hindenberg, and as long as these fraudulently securitized derivative contracts (now standing at over $265 trillion among JPM, B of A, Citi, MS and HSBC alone) are honored as written, civilization as we presently know it, will collapse long before this number is reached.

If you think the worldwide notional value of derivatives is 600-700 trillion (as it keeps getting misquoted lately) you are kidding yourselves.

”Last year alone the Depository Trust Clearing Corporation settled $1.88 QUADRILLION in securities transactions across multiple asset classes.
[They] essentially turnover the equivalent of the U.S. Gross Domestic Product every three days.”

"Teach those impudent Americans a lesson and bring them back to Colonial status. If they don't accept our (IMF? BIS?) Charter they'll find themselves in a most disastrous war." (sound familar?)

[Snoop-Diggity-DANG-Dawg]

When Did We Agree to This?

November 4th, 2008, silly.

[HSpencer]

Actually we did not agree to anything did we? In order to have agreed to anything, we would have had to have information in real context to make a decision to agree or disagree. Supose we had disagreed? What then? How do we know we are being briefed on the truth about anything?
Where are the hard and indisputable facts on the exact amount of money to the nearest dollar that the US is in debt for? And, if a figure is put forth on that, who can prove that it is the right one? Do I know? Do you know? Does anyone? Unless your dyed-in-the-wool math cracker, then you and I don't know how to consider anything much more that a few hundred thousand dollars (some people stretch to count that high!). What we do instead, is see the Treasury Secretary on TV go and get on one knee (of course on camera) to the Speaker of the House, and we think "Oh My God", we must be in deep kim-shee for sure! But as we go back to our beans and cornbread and iced tea supper, we really have no clue about anything. My whole point here is this: We are probably in such bad financial shape that it would make our heads hurt and ears ring big time. But, we don't know and won't know where we really stand as a country financially. All we know is what we are "told". Thanks GAO!!!