From BBC News
“From programmes involving large capital infusions into hundreds of financial institutions, to a mortgage modification programme, to public-private partnerships using tens of billions of taxpayer dollars to purchase ‘toxic’ assets from banks, Tarp has evolved into a programme of unprecedented scope, scale and complexity,” said Mr Barofsky, special inspector general of Tarp.
However, he said the programme was only part of the wider effort to rescue the US economy.
“As massive and important as Tarp is on its own, it is just one part of a much broader federal government effort to stabilise and support the financial system.
“The total potential federal government support could reach $23.7 trillion,” he added.
Continue Reading US ‘Exposure to Crisis $23.7tn’
Related Links:
U.S. Rescue May Reach $23.7 Trillion, Barofsky Says (Update3)
Bloomberg.com (21 July 09)
Treasury Clashes With Tarp Watchdog on Data
Financial Times (21 July 09)
Bailout’s Watchdog Gives Cost Estimate, Says it’s Meaningless
Smart Brief (20 July 09)
Treasury, Fed Criticized on TARP Spending Transparency
USA Today (20 July 09)
@RickPA: thanx…
Some corrections: that would be: $500 trillion; and also $23.7 trillion…so sorry about the typo
With FED Chair Bernanke before one committee and TARP IG Barofsky before another…if you combine what both testify to, you learn that even though Mr. Bernanke suggests he is not monetizing the treasury bonds/dollar, he in fact has previously admitted to allocating $300B toward such a monetization….and that is the amount he admits to…Mr. Barofsky doesn’t flinch when he repeatedly states that the amount of the 50 programs funding is $23.7 trillion….an amount nearly double the annual US GDP. With three suspect elections behind us and the constant outcry that GS has captured the Treasury, and with market manipulation( along with commodities ) continuously being handled by the Plunge Protection Team…what was once known as the “national economy” is nothing more than crony capitalism lead by a select group of oligarchs…Globally the EU central bank and the BOJ both are intertwined in this process of devaluing the fiat currencies…and with the two elections due this fall…one in Ireland and the other in the UK are elemental to furthering along the consolidation of power in Europe; and with the imminent fruition of the ratification of the Lisbon Treaty ( giving Europe a constitution, thus denying individuals national sovereignty) all actions throughout Europe/UK/Ireland will reside in the hands of the EU beaurocracy and remove forever sovereign rights of any individual to contest any matter before the EU Courts and Parliament ( a modern form of ‘taxation without representation’).IMHO because the Yen and the pound sterling represent minor currencies, and after those elections, the only option will be to issue a basket of currencies at first to replace the failing dollar reserve ( as proposed by the Chinese central banking officials); in addition,IMHO an expanding of the goal posts to allow at least a 200% deficit limit ( as Japan already has one that exceeds 130% GDP; and the US has one aprox.70% GDP; and the UK has one aprox. 80% GDP )….these amounts are unsustainable, already admitted by President Obama….With Iceland ( a failed economy) seeking admission to the EU; and as well as the UK, also in near default, both nations are biding time to come under the umbrella of a new financial system (yet formulated)…and IMHO might collapse/default without this (imminently) new political association. The BRIC countries all see this multi-country devaluing and are motivated to form new bilateral arrangements and keenly look forward to another reserve currency…China in particular has more than $2.2 trillion to release or replace…Keeping this sleeping Tiger at bay is a bygone strategy…meticulous economic moves by China are daily taking place…a manifestation of a basket of currencies as suggested by the BRIC countries as an alternative is a serious possibility. Mr Brezinski’s ( Anglo/American/Dutch) “chessboard” is under severe tension…thus we might see armed conflict in the near future…as this “last resort” has become America’s first resort reply for some time now…diplomacy has been relogated to the “peace” and in recent times done poorly at best ( Iraq, Afghanistan)…as a nation we have not only ‘given an inch’ to the leadership in Washington, but have handed them the keys to the city. As Catherine might suggest we, as individuals, must decentralize to survive.
Richard this is my take also. You are spot on. The IG could not possibly have any real clue as to the exposure when the game is being played and there is piling-on without a single blow on a whistle. The referee has left the field and has joined the bookies in the scam of all scams.
Yes oh yes…they’re finally scratching the surface..HA!!! Remember there are $500 B to $1.2 quadrillion notional value in derivatives (and still counting) to account for and wind down…Yes $23.7 is a beginning…at best….Does anyone really suppose Mr. Barofsky could allow this factual to enter the public domain without his “handlers” permitting it first?? IMHO with the devaluing of all fiat currencies in the wings ( this fall??); and the continual escalation of another potential armed conflict ( Iran??? also in the fall); the next step, again IMHO, has to permit a “basket of currencies”; and then maybe permitting the ratio of governmental deficit spending to actual taxed income to exceed 100% globally for each participating country ( to just maybe to 200% or more )!!! Yes folks they will ( must!) continue to move the goal posts further and further just to maintain the status quo…anyway that’s my take..What’s yours??