(+3)
Remember that post I did five weeks ago about exactly how much the federal bailout was going to cost?
Yeah, well, take that number and multiply it by SIX:
According to CreditSights, a research firm in New York and London, the U.S. government has put itself on the hook for some $5 trillion, so far, in an attempt to arrest a collapse of the financial system.
The estimate includes:
- Lending a cumulative $1 trillion in overnight or short-term loans since March to primary dealers through its emergency discount window
- A cumulative $1.8 trillion available through its term auction facility, a series of short-term transactions it began making available twice a month in January
- The Fed also took on tens of billions in debt, including $29 billion in debt of Bear Stearns
- They made $60 billion of credit available to American International Group.
- $22.5 billion to set up a special purpose vehicle to manage some of AIG’s residential mortgage-backed securities
- $30 billion of a second fund to hold $70 billion of multi-sector collaterized debt obligations on which AIG wrote credit default swaps.
Oh… and Christmas is right around the corner. Ho ho ho!
[source: Forbes]
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