Hank Paulson stressed the need for a “bold approach” to fixing the nation’s crumbling financial institutions. How bold? One trillion dollars bold. Politico:
Congressional leaders said after meeting Thursday evening with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke that as much as $1 trillion could be needed to avoid an imminent meltdown of the U.S. financial system.
…”We’re talking hundreds of billions,” Paulson told reporters. “This needs to be big enough to make a real difference and get to the heart of the problem.”
Senate Banking Committee Chairman Chris Dodd (D-Conn.) said on ABC’s “Good Morning America” said lawmakers were told last night “that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications, here at home and globally.”
Sen. Richard Shelby of Alabama, the ranking Republican on the Banking Committee, told “Good Morning America”: “I figure it will be at least half a trillion. But if you look at what the Fed has already done [by rescuing insurance giant AIG], and the extension of power to Treasury to deal with Fannie Mae and Freddie Mac, I believe we’re talking about a trillion dollars.”
So, roughly, that’s $3,333 for every person in the U.S. The bill comes to $7,246 if you only count actual taxpayers.
It will be pretty hard for either presidential candidate to justify any kind of tax cut or spending increase with this kind of bill hanging over our heads. But we’re sure that won’t stop them from trying…
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