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Bloomberg Analyst: $700 Billion Bailout Could Balloon to $5 Trillion
Jeff Poor
Business & Media Institute
Sunday, Sept 29, 2008
Conservative House Republicans and economists warn about the toll a $700 billion federal bailout of the financial sector would have on the taxpayers footing the bill. But according to Bloomberg TV analyst Marc Faber, the actual cost could be closer to $5 trillion.
Faber, author of the “Gloom Boom Doom” report, appeared on Bloomberg TV’s Sept. 26 broadcast of “Bloomberg Today” and noted just how small the proposed $700 billion bailout is compared to the overall U.S. credit market.
“So now they try to solve the problem by having this credit bubble actually extended and I think the $700 billion will be like a drop in the bucket because the total credit market in the U.S. is something close to $60 trillion, then you have the CDS market – credit default swap – of around $62 trillion. Then you have the whole derivatives worldwide worth about a notional $1,300 trillion. So the $700 billion is really nothing and the Treasury is just giving out this figure when actually the end figure may be $5 trillion.”
(Article continues below)
Faber, managing director of Marc Faber Ltd., is known for predicting the October 1987 stock market crash one week before it happened.
In his Bloomberg TV analysis of the financial bailout, Faber noted the inconsistencies of government intervention to date, but not without taking a swipe at the compensation of Wall Street executives.
“The reaction to that is inconsistent,” Faber said. “You let essentially Lehman Brothers go bankrupt but you save AIG and you save other brokers by merging them with banks and then you come with a bailout plan that should be paid by the taxpayer, when Wall Street last year in total received a compensation of $69 billion – $38-39 billion of which were bonuses paid to the executives essentially of Wall Street.”
Faber told “Bloomberg Today” host Jeremy Naylor the solution isn’t government intervention through a bailout, but to figure out how to eliminate the excessive leveraging in U.S. financial markets.
“Well first of all, I think the decline of home prices of 20 percent is a relatively minor decline so far,” Faber said. “And it’s created so many problems. It’s not the problem that home prices have gone down. The problem is excessive leverage. And somewhere, somehow, the U.S. has to try to bring down the excess leverage that exists in the system – that incidentally was built over the last seven to 15 years under Fed chairman Mr. Greenspan and then also under Mr. Bernanke.”
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9 Responses to “Bloomberg Analyst: $700 Billion Bailout Could Balloon to $5 Trillion”
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September 29th, 2008 at 4:28 am
new video
http://ca.youtube.com/watch?v=Bw32XCw_AvM
September 29th, 2008 at 6:43 am
I am not used to counting that many zero’s.
But when I was reading the bailout proposal, it talked about an aggrevated amount of 50 Trillion I thought. Said something like that would be the limit.
September 29th, 2008 at 11:17 am
Become a soldier in the Information War!
Make flyers and/or movies of whatever you feel is most important or whatever you are most educated about.
Wearechange.org has an excellent 911 Truth flyer.
Maybe you can come up with a creative, unique new Information Warfare Tactic? If so, record yourself in action and share it with your fellow troops!
The first step to defeating the “new world order” neo-fascists is to attain a critical mass of wellinformed and INSPIRED individuals.
We CAN take our world back as soon as we remember that WE ARE THE REAL SOURCE OF POWER!
THE FUTURE IS OURS, WE ONLY NEED TO CHOOSE TO TAKE IT BACK!
SPREAD THE WORD,
FREE THE HERD!
On with the r3VOLution!!!…
!!!DTTNWO!!!
September 29th, 2008 at 2:42 pm
When the Fed is abolished by Congress(or pigs fly) we will have a hance…not until then
September 30th, 2008 at 4:46 am
The Federal Reserve don’t need no stinkin’ bill!
Don’t think for a minute that the money changers and their minion had all their eggs in this basket. This simply means that they’ll operate out of the public eye……
September 30th, 2008 at 5:02 am
Nothing will change until 1.) Abolish the Federal Reserve. 2.) Set term limits 3.) Restrict lobbyists 4.) Return to the gold standard.
I don’t see Obama, McCain, or our Congress willing do do any of the above, so take it in the shorts US taxpayer. . .
September 30th, 2008 at 4:41 pm
An Analysis Of The Change Issue
As yet another Presidential election season has come due, it is well worth noting that “change” has become a constantly recurring campaign slogan in American elections. Those intellectuals who opt to continue onward with such a tired refrain are well aware that very little will change for the betterment of the American public-at-large, in spite of the media-controlled flood of campaign rhetoric on behalf of the respective nominees.
Many Americans may well wonder, “Why is it that we desire change in the first place?”
Whereas the Constitution of the United States was originally fabricated in order to give the American citizens a simple guideline for their representative government, more than two- hundred years of incessant Legislation has produced a miasma of orders, acts, statues and laws that are repugnant to the Constitution – each time these ideas have been merged into public policy in the name of change.
read the rest @ http://beholdtheforce.blogspot.com/
October 1st, 2008 at 2:47 am
this is war this not a game were playin, http://www.pastorbutch.com http://www.obamacrimes.com yee haw no mo obama. check it out. http://www.donaldtrumphair.com http://www.thepentacon.com go viral baby. hits from all over the world. craigslist
October 1st, 2008 at 10:17 pm
Those long letters were really boring. Who cares about money anyway. The only thing that will free the herd is Bird flu. Haven’t you ever seen “They Live” with Roddy Piper. You have to battle with people like that to get em off the Matrix. And the sad thing is that it is the truth in themselves , the I Am that they are so wary of. But people are talking a little more about big issues and be happy you people who speak of fantastic things because you will be ready if change comes.