Monday, November 24, 2008

More Bailouts

Guess what? We all woke up this morning as co-owners in Citibank. Do you think maybe we will be able to get better service at the counter now?

Don't hold your breath waiting for it.

CNBC has this list of bailouts that our wonderful elected officials have been doling out: (numbers are in Billions of Dollars)

The first two columns are from the CNBC article. I added the third column which is how much each of us will have to pay if the cost of each bailout is spread out among all 300 million men women and children in this country.

(TAF) Term Auction Facility900 B$3,000
Commercial Banks99.2 B$331
Investment Banks56.7 B$189
Loans to buy ABCP76.5 B$255
AIG112.5 B$375
Bear Stearns29.5 B$99
Term Securities Lending Facility225 B$750
Swap Lines613 B$210
Money Market Investor Funding Facility540 B$1800
Commercial Paper Funding Facility257 B$857
(TARP) Treasury Asset Relief Program700 B$2,334
Automakers25 B$84
(FHA) Federal Housing Administration300 B$1,000
Fannie Mae/Freddie Mac350 B$1,167

That's right! If the cost of these bailouts was passed around fairly among the 300 million people living in the United States they will cost every single one of us $14,282 each. Now if you take into account that a large number of people in this country pay no tax (2005 numbers indicate that 99,880,223 people paid taxes that year, so lets go with that.) Rounding off to 100 million taxpayers puts the tax burden on those of us who do pay taxes at $42,845 each.

I'm not saying that we will have to pay that. It will be a lot more than that. Remember that is just the bill for the bailouts. All the money the rest of the government needs, that you usually pay with your tax dollars will still be needed. This is over and above what you normally pay in taxes.

Again I can hear the objections already - "David you ignorant slut, the government isn't actually handing all that money to the banks. They are just saying they will guarantee loans to that amount." Anyone saying that would be right. But how many of you out there think that most of those "toxic" assets are actually going to get paid. I suspect that good old Uncle Sam is actually going to end up ponying up most of the cash he is offering. If I am right then we are right back to where we started - if you are a productive taxpaying member of our society - you are screwed!

I'll say it one more time STOP THE DAMNED BAILOUTS. I can't afford this, you can't afford this, our entire country can't afford this. Someone needs to take an elementary school math teacher to Washington and start beating Congressmen over the head with her. Maybe then they will learn how to do a little simple math and figure out that there is not enough money in our pockets to fund their stupidity.

Finally, you will notice that the Citibank bail out is not even on that list from CNBC. Add in that 300 Billion and the cost per taxpayer jumps up another $3,000 each.

1 comment:

movie buff said...

my initial thought upon hearing about Citibank's potential bankrupcy was, Yipee! this will cancel out the small fortune's worth of debt I have stored up on my trusty Citi-card... right?