Estimated U.S. taxpayer cost for bailout jumps

Estimated U.S. taxpayer cost for bailout jumps

www.reuters.com

WASHINGTON (Reuters) - U.S. congressional budget analysts have raised their estimate of the net cost to taxpayers for the government's financial rescue program to $356 billion, an increase of $167 billion from earlier estimates.

The Congressional Budget Office had originally projected the $700 billion Troubled Asset Relief Program would cost taxpayers $189 billion.

The additional cost, which applies to TARP spending for fiscal years 2009 and 2010, was included in the CBO's March projection of a $1.8 trillion deficit for fiscal 2009, which ends September 30.

The TARP cost projection was raised due to changes in financial market conditions, new transactions and a shift in expected timing of payments, the CBO said.

The Treasury Department announced plans to use some of the money to help avoid home foreclosures and made new deals with Bank of America and American International Group. Those programs involved higher subsidy rates than previously estimated, the report said.

Congress passed the Wall Street bailout program in October with the goal of stabilizing banks and reassuring jittery markets.

(visit the link for the full news article)

The numbers just keep climbing higher and higher. How is the US going to sustain this level of spending?

As of March 16, 2009, the total U.S. federal debt was $11,042,553,971,450.47,[2] or about $36,314 per capita. Of this amount, debt held by the public was roughly $6.74 trillion.[3] In 2007, the public debt was 36.8 percent of GDP,[4] with a total debt of 65.5 percent of GDP

Source

Isn't $36,314 more than the average wage pays in a year in the US. And does the majority of the nation make above minimum wage? I don't think so, so can anyone else see where this is heading.

www.reuters.com
(visit the link for the full news article)



[edit on 5-4-2009 by FreeSpeaker]

reply to post by FreeSpeaker

How is the US going to sustain this level of spending?

Who says they are?

There's nothing but bad Chinese loans (over $1 trillion dollars worth) and Reserve Capital supporting the economic bailout.

We're done. The US has already hit rock-bottom.

The American Dollar isn't worth a third of the paper it's being printed on, the only thing keeping up the charade that the United States economy can some how take all of this reckless spending is the over-valuation of American stocks and bonds on the stock market.

Answer: The average median income depends on where you live and yes, MOST people make a hell of allot more than minimum wage. Minimum wage is for teens, low / no skilled labor, and those not willing to do what it takes to get paid more than that (like move away from sh itsville, WV to a place where the real jobs are.) And of course the will to excel in a job or career once that opportunity is presented.

www.census.gov...

United States Average 48,934

Alabama 39,832
Alaska 59,902
Arizona 48,092
Arkansas 38,668
California 54,499
Colorado 54,719
Connecticut 60,423
Delaware 53,580
District of Columbia 47,741
Florida 45,077

Georgia 46,883
Hawaii 62,511
Idaho 47,805
Illinois 50,991
Indiana 45,768
Iowa 48,508
Kansas 44,857
Kentucky 39,033
Louisiana 39,768
Maine 46,008

Maryland 63,475
Massachusetts 58,298
Michigan 47,584
Minnesota 59,583
Mississippi 36,533
Missouri 45,954
Montana 38,451
Nebraska 49,481
Nevada 51,509
New Hampshire 61,444

New Jersey 63,989
New Mexico 42,396
New York 49,558
North Carolina 44,418
North Dakota 43,932
Ohio 47,104
Oklahoma 41,733
Oregon 45,950
Pennsylvania 48,795
Rhode Island 52,587

South Carolina 42,599
South Dakota 45,476
Tennessee 41,822
Texas 44,717
Utah 57,028
Vermont 52,902
Virginia 55,637
Washington 54,295
West Virginia 37,671
Wisconsin 48,811
Wyoming 48,663

reply to post by infolurker


Thanks for the info. The averages are higher than the $36,314 per capita, but $48,934 isn't that far away either. A difference of $12,620 is smaller than the differences between some of the states. Shakey ground forsure.