Bailout By The Numbers: Total Fed Committments Now Total $13.9 Trillion...All Of Which Must Be Borrowed

Now that we have allocated a potential $13.9 trillion for the solution (roughly 7 years of total federal tax receipts OR 100% of GDP---you choose the metric that makes you the least angry), it's nice to hear that the problem is solved, that the banking and credit crisis has run its course.

Excuse my language, but that's $13.9 trillion FUCKING dollars.  That's a hell of a special committment given that we are flat broke and every single, solitary buck must be borrowed.

Oh, and by the way, the banking and credit crisis has a long, long way to run, still.  We are very likely talking about a lost decade for the United States as our short-term focused political structure has done everything possible to re-inflate the bubble thus perversely guaranteeing that the deleveraging will last a really, really long time. 

So long in fact that our Teflon, two-party political structure could finally be brought down by the rise of a people's candidate to rival Thomas Jefferson and Andrew Jackson.  The anger will grow with every lost year and both parties will suffer substantially.

Full report PDF from the FDIC.

Comments

[James H]

Mish has a pretty savage response to this today:

"I have a request for Geithner and Bernanke: Tell the truth or shut up.

Both Geithner and Bernanke maintain that banks are well capitalized. Indeed many banks are returning TARP funds. However, if banks are well capitalized then why not cancel the remaining $7 Trillion of this taxpayer ripoff right now? Pray tell, what's the need to go ahead with the PPIP?

Ben and Tim, please stop saying that taxpayers will not lose money on these schemes. You know, I know and the whole world knows that is a preposterous lie. Please come out and say you really do not give a damn about taxpayers because we all know that you don't. This is a taxpayer sponsored bank bailout, no more no less."

http://globaleconomicanalysis.blogspot.com/2009/06/breakdown-of-feds-139-trillion.html

[James H]

Nice job by Barry Ritholtz on TechTicker, today.

Money quote (re receivership for Citi): "If it's still Summers and Geithner vs. everybody else -- people that know what they're doing and are intelligent -- then Citigroup is going to be kept on life support forever. But when the adults step in and say 'Sorry, you're insolvent, you gotta go,' then Citigroup is going to be the first to fall, and who knows who else is right behind them."

I don't know about you guys, but I think BR just called Summers and Geithner a couple of stupid kids who don't know what the hell they're doing. (He also thinks TARP was just a ruse to secretly prop up Citi.)

http://finance.yahoo.com/tech-ticker/article/264931/Bailout-Nation-Was-TARP-Just-a-Ruse-to-Protect-Citigroup?tickers=MS,JPM,C,BAC,XLF,FAS,FAZ

[Ain't Bullshittin']

Hard to not confuse the obvious with reality......it's really obvious the taxpayer is gettin' SCREWED. OK...back to the daily beating. Morale is set to improve...eventually.

[Mike]

Removed by DB for "being an extremely uncool post in our great community." I have zero tolerance for racism.

[DailyBail]

The Japanese Bond Smugglers Are Missing

http://www.businessinsider.com/the-japanese-bond-smugglers-are-missing-2009-6

[DailyBail]

@James

It's on my long list for new posts. Never ends.

[Holocaust Gaza]

Still, the problem of not enough jobs or jobs which real pay is getting bigger each day. What does this elite think it is doing? Why is the US population watching? Where is the protest?

We read in the news that after 13.9 trillion we have to be happy that the banks/institution may pay back 70 billion?

We aren't to bright, aren't we?