Depending on the final number, each man, woman, and child in America will have to ante up about $2,500 to $3,200 to save our credit markets from tanking due to the collapse of the housing market and because of the sub-prime loan debacle. The total amount of debt to all Americans will between three-quarters and one trillion dollars. This doesn't even include the $700 billion in bailouts that have been promised for AIG Insurance, Fannie Mae, Freddie Mac, and all the rest.
Don't pull out you wallets right now. The governement will pay for it by just adding it to the "tab" we've been running for years. That "tab" is commonly called the Federal Deficit. And, what the hell, we'll just make it a little bigger. Our Treasury Department will just have to sell more bonds to cover our debt. Hopefully, we'll be credit worthy enough, after all of this, for domestic and foriegn investors to feel comfortable enough to snatch up all those new I.O.U.'s (Treasury Bonds) and feel secure in knowing that our government will make good on all those future interest payments. So, the next time you see a home that has a sign on it that says "bank owned" or "foreclosure," you can tell your kids that: "We own that house!" Of course, you will own it along with 300 million other Americans who went into debt to pay off a couple of million delinquent homeowners. Also, you really won't own it until we pay off the trillion or so dollars in debt. (By the way. Our government, for years, has had to borrow just to pay off the interest that we owe on our debt. So, that trillion dollars in new debt is a lot higher than what our government is saying. I just thought you'ld like to know that!)
Now, to the campaign trail. In the midst of all this new debt, a debt that is even greater than all the "give away" promises that Barack Obama has made while on the campaign trail, do you really think your going to see all those Obama-pledges if and when he comes to office? I don't think so. But, even as of yesterday, he was still promising stimulus checks of $1000 per person. He was still promising infrastructure rebuilding and "green" projects as if nothing has happened in the last week. He's seems to forget that it was his political party's promises of cheap and readily available home loans to unqualified buyers that got us in this problem in the first place. But, unfazed, he presses on. $65 billion, here. Another, $50 billion or so, there. A few more billion over here. And, well, it just doesn't stop! He seems to think that, some how, a reduction in Federal spending by $250 billion for tax cuts for the rich and Iraq War and, maybe, $50 billion more in Windfall Profits Taxes on the oil companies will pay for a bill that is up to 8 times that amount (2 to 2-1/2 trillion dollars). According to Obama-math, it must be doable. I guess if you're the "One," any miracle is possible!