Government Bailouts

It is a financial services melt down of historic proportions. Not since the great depression have we seen such global chaos in our financial services (i.e. banking) sectors. Riding to the rescue is the U.S. government, bailing out, propping up and now even offering to buy the very assets that are sinking the institutions. So if one entity buys assets from another entity which are sinking that entity, what do you suppose those assets do to the purchasing entity (our government)? Don't they then sink it financially?

Before this financial crisis, the U.S. government was hurtling towards a $10 trillion national debt. To put that in proportion, we have direct debt liabilities that equal more than $30,000 for every man, woman and child alive in the U.S. today. Indirect liabilities, where we've made commitments that don't have to be funded yet, drive that number closer to $58,000 for every man, woman and child alive in the U.S. today. Those are sobering numbers, folks!

Thus far, the Iraq war has cost the U.S. about $600 billion - of money that we don't have to spend. So guess what? We borrowed it! The loans to finance the Iraq war amount to about $2,000 for every man, woman and child alive in the U.S. today.

Similarly, the bailout of the financial services (i.e. banking) sectors such as Fannie Mae, Freddie Mac, AIG and other measures has cost the American taxpayers more than $300 billion. Again, this is money that we don't have, so we have to borrow it. The loans to finance this have so far amounted to about $1,000 for every man, woman and child alive in the U.S. today. The measures that Congress is considering today (Friday), are likely to drive that number north toward about $600 billion --- or the same cost as the Iraq war.

Given that this is an election year, it is curious that none of our candidates are talking about what they'll do to get their arms around this financial mess. America is drowning in debt. We are a debtor nation. Shouldn't someone be asking how we're going to pay any of this back, or when?

I agree that the financial services sectors must be salvaged and not allowed to fail. I just wonder if the average American realizes the cost and is really willing to pay for it.