U.S. Bailout Costs May Reach $23.7 Trillion, TARP Inspector Says

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By JIM KUHNHENN (AP) – 1 hour ago 7/20/09 3:30pm EDT

WASHINGTON — The federal government has devoted $4.7 trillion to help the financial sector through its crisis, a level of assistance equal to about one-third of the overall U.S. economy, a watchdog report said Monday.

Under the worst of circumstances, the report said, the government's maximum exposure could total nearly $24 trillion, or $80,000 for every American.

The figures are part of a tough new quarterly report to Congress from special inspector general Neil Barofsky, who accuses the Treasury Department of repeatedly failing to adopt recommendations aimed at making one component of the government financial rescue effort more accountable and transparent.

The $4.7 trillion commitment to the industry takes into account about 50 initiatives and programs set up since 2007 by the Bush and Obama administrations as well as by the Federal Reserve. Barofsky oversees one of the initiatives — the $700 billion Troubled Asset Relief Program.

Much of the government assistance is backed by collateral and Barofsky's $23.7 trillion estimate represents the gross, not net, exposure that the government could face.

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Watchdog: Financial Bailout Support Could Reach $23.7 Trillion
The total price tag for federal support stemming from the financial crisis could reach $23.7 trillion in the long run, the government's top bailout watchdog says in a new report to Congress.

FOXNews.com
Monday, July 20, 2009

The total price tag for federal support stemming from the financial crisis could reach $23.7 trillion in the long run, the government's top bailout watchdog says in a new report to Congress.

Neil Barofsky, the inspector general for the Troubled Asset Relief Program, plans to deliver his report Tuesday to the House Oversight and Government Reform Committee.

The $23.7 trillion figure is admittedly a high-ball number and reflects the total potential gross exposure, but Barofsky in his prepared testimony notes that the TARP -- which started as a $700 billion bailout -- has expanded well beyond that.

"TARP has evolved into a program of unprecedented scope, scale and complexity. Moreover, TARP does not function in a vacuum but is rather part of the broader government efforts to stabilize the financial system," the report says.

"The total potential federal government support could reach up to $23.7 trillion," the report estimates, factoring in commitments from "dozens of programs" implemented throughout the federal government since 2007.

In supporting documentation obtained by FOXNews.com, the inspector general's office explains that the $23.7 trillion spans about 50 "initiatives or programs" created by federal agencies in the wake of the economic crisis.

The estimate covers commitments that could come from programs at the Federal Reserve, Treasury Department, Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the Federal Housing Administration, the Department of Veterans Affairs and other agencies.

It notes that the total "financial exposure" of TARP and related programs alone could reach $3 trillion.

While not a firm or official figure, the estimate has the potential to send lawmakers into sticker shock.

"The potential financial commitment the American taxpayers could be responsible for is of a size and scope that isn't even imaginable," Rep. Darrell Issa, ranking Republican on the oversight committee, said in a written statement. "If you spent a million dollars a day going back to the birth of Christ, that wouldn't even come close to just $1 trillion -- $23.7 trillion is a staggering figure."

In the report, Barofsky also says that the Treasury Department has "repeatedly failed" to adopt recommendations that his office believes will bring more transparency and accountability to the execution of the bailout.

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http://www.foxnews.com/politics/2009/07/20/watchdog-financia...

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Stop the NWO....It's just illumi..Naughty !

haha great

Will Congressman Issa have the cojones to stand up and lambaste this bankrupting of America? This exponential rise in debt is incurable. We are doomed. Who is going to lend us money when we show these cards?

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZ27ITF7...

http://bayimg.com/GaCOBaAcl

apologies to whomever

i need a drink....

Can we find out?

calm before the storm...

"The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government -- lest it come to dominate our lives and interests."
-- Patrick Henry

This number will be presented in Congressional testimony tomorrow according to the Bloomberg article. Better order your gold today.