18 nov. 2008

Financial Crisis Tab Already In The Trillions


Given the speed at which the federal government is throwing money at the financial crisis, the average taxpayer, never mind member of Congress, might not be faulted for losing track.

CNBC, however, has been paying very close attention and keeping a running tally of actual spending as well as the commitments involved.

Try $4.28 trillion dollars. That's $4,284,500,000,000 and more than what was spent on WW II, if adjusted for inflation, based on our computations from a variety of estimates and sources*.
Not only is it a astronomical amount of money, its' a complicated cocktail of budgeted dollars, actual spending, guarantees, loans, swaps and other market mechanisms by the Federal Reserve, the Treasury and other offices of government taken over roughly the last year, based on government data and news releases. Strictly speaking, not every cent is a direct result of what's called the financial crisis, but it is arguably related to it.

Some 68-percent of the sum falls under the Federal Reserve's umbrella, while another 16 percent is the under the Troubled Asset Relief Program, TARP, as defined under the Emergency Economic Stabilization Act, signed into law in early October. (The TARP alone is bigger than virtually any other US government endeavor dating back to the Louisiana Purchase. See slideshow.)

"Financial Crisis Balance Sheet"

  
Government EntitySum in Billions of Dollars
Federal Reserve
(TAF) Term Auction Facility900
Discount Window Lending
Commercial Banks99.2
Investment Banks56.7
Loans to buy ABCP76.5
AIG112.5
Bear Stearns29.5
(TSLF) Term Securities Lending Facility225
Swap Lines613
(MMIFF) Money Market Investor Funding Facility540
Commercial Paper Funding Facility257
(TARP) Treasury Asset Relief Program700
Other:
Automakers25
(FHA) Federal Housing Administration300
Fannie Mae/Freddie Mac350
Total4284.5
Note: Figures as of Nov. 13, 2008