I'm entirely confused. Can someone please explain the current economic situation going on in the US right now?
Here is what I know:
The Feds have given out more than $600 billion in the past year — to bail out, or help bail out, some of the biggest names in American finance.
On Wednesday, the central bank took the unprecedented step of asking the Treasury Department to sell debt on behalf of the Fed. The first of those auctions raised $40 billion, and two more to raise an additional $60 billion are scheduled for Thursday.
Stimulus checks totaling $168 billion, sent to Americans earlier this year to bolster the economy, will have an impact on the budget deficit. For the budget year ending Sept. 30, it's expected to hit $400 billion, the second highest on record and more than double last year's deficit of $161.5 billion.
The Bush administration is projecting that the deficit for the new budget year, which begins Oct. 1, will surge to an all-time high of $482 billion. And that estimate doesn't include any costs for bailing out Fannie and Freddie ~$200 billion dollars.
(Info attributed to Martin Crutsinger- Economics Writer)
Here is what baffles me:
The Feds just paid $89 billion to save AIG's ass, and now own 79.9 % of the company. So are they opening the door to having all the debts gone bad to the Fed's, actually the US taxpayers, who now own 79.9%, the same amount in liability???
$600 billion in the last few months
$400 billion budget deficit 9/30/08
Next year's deficit will be $482 + $200 billion in bail out $, SO FAR
Plus the National debt $9.6 trillion
The Iraq war $$$ is not actually in the budget? $554 billion
When I look at these numbers, I come up with *bankrupt*.
Maybe some mathematician, or magician can explain it to me, please!
I just have to coin a phrase here.... this seems like "Fuzzy Math" a term used in the debates by one George W. Bush