NEW YORK (CNNMoney.com) - The federal government is likely to spend $835 billion this year fighting the crises in the financial system and the economy, according to a new report by the Congressional Budget Office.
That spending represents about 6% of the nation's gross domestic product.
Of that amount, $340 billion is going toward the Troubled Asset Relief Program, which is being used primarily to bail out banks, insurers and the auto industry. Another $290 billion in 2009 outlays is being used to prop up mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500).
In addition, $187 billion is being used for economic stimulus and relief efforts such as extended unemployment insurance.
As expensive as that seems, the CBO notes that "the current recession has little effect on long-term projections of non-interest spending and revenues."
Are we going to pay off Michael Jackson's creditors, too?
Goldman Sachs received billions of our dollars to "not fail," and then they promptly raised the base salaries by 50% to offset the "smaller" bonuses they will payout. Why should they even payout bonuses if they failed miserably last year to begin with? Sounds like ENRON all over again, except this time its the tax payer and not the employee and others that lose.
Wait just a minute...everywhere I go or read, I see/hear Republicans talking about how Obama did more debt spending in 6 months than all other presidents throughout US History. SOMEBODY is clearly mistaken...and SOMETHING tells me its NOT every legitimate news outlet in the nation...
The damage of the borrowing to cover the "bailouts" will pale in comparison to the destruction Waxman-Markey will wreak on the economy. Historians will compare this hideous legislation to Smoot-Hawley. Can we order drug testing for legislators? It sure seems they are on something.
and before the righties start complaining....Duh-bya started the TARP bailout
It's all taxpayer's money! Our future generation will suffer from this mad spending!
We as citizens have spent more than $835 billion in salaries to our elected officials who more help create this mess under their watch and they are still being paid. THINK FOR YOURSELF AND DON'T LET THESE OFFICIALS CONTINUE TO PLACE BLAME EVERYWHERE BUT ON THEMSELVES.
Why not sell off Fannie & Freddie to responsible busness persons? I am sick and tired of paying for saving the greedy! We don't need to bail out the uninsured either! Let us choose who we want our for medical coverage or to not get it as we see fit! Kick all the illegals out of the country that are such a drain on our heathcare, educational and other systems, without the 12 million or so of them we can make a real recovery getting US Citizens employment!
Should Be Dancin' – No he has a lot of antique and other collectable to sell off for the money. That should have never cross you mind. The Republican spent like water and now they are trying to close the fauet. Republicans please.
Lets see... $835 billion... 300 million citizens... comes out to about $2700 per citizen... plus or minus $11,000 per household.
Tell me that it wouldn't have been better to distribute that cash to the people and have us spend our way out of the recession.
Not to worry, our wealthy can afford it. Now, where did we put those wealthy anyway? No worries, we can always make more people the wealthy by tweaking the tax code a bit. After all, last year, I wasn't "wealthy" and now I am. The president said so.
But if the government is gonna make me one of the wealthy, I expect to look the part. Now where's my yacht, country club membership and Bentley, dammit?
Hurry – send mone to Alaska – the governor is riding free again. Wonder if she dragged her kids there too?
@ Fair is Fair, who said "Tell me that it wouldn't have been better to distribute that cash to the people and have us spend our way out of the recession."
It would not have been better to distribute that cash to the people and have us spend our way out of the recession.
@ Jefe, who said " did more debt spending in 6 months than all other presidents throughout US History. "
They don't adjust the dollars to today's dollar's value, so it's not apples to apples anyway...just most huff-n-puff smoke-screening misrepresentations from the GOP.
@ Peter, who said "Our future generation will suffer from this mad spending"
Yeah yeah...an indefinable, unquantifiable, unprovable claim of apocalyptic disaster intended to enrage and terrify the public in order to make them more malleable. I guess we shouldn't be suprised that the GOP is taking a page out of the bible.
Even if it was true, I'll give Obama props for at least spending $800B in a manner that creates problems only for ourselves. Based on this part of the GOP's arguments, the $800B spent on Iraq not only threatened our future generations but pretty much ruined the current generation for Iraq and threatened their future ones as well.
I think I've figured it out, Obama wants to keep the economy in shambles so that responsible middle class Americans have to tap out on their savings. This will relieve them of their life time savings to be re-distributed into the economy to be taxed by the Government and thereby given to the irresponsible lower class Americans in the form of Federal Aide and Federal programs. You didn't think he was talking about redistributing Ted Turner, Oprah, Buffet, Gates and the other elitists wealth did you? It must be part of the overall plan to bring Americans to their knees before Big Government. We sheep are just too stupid to take care of ourselves and would never embrace socialism head on now would we? Ever wonder why government employees are still getting those paychecks and raises while the rest of America is out of work?
@ fair is fair,
That would be great to have an extra $11,000 per household. That would create a pretty big boost to the average wealth in the country.
Unfortunately, in the world of economics that would mean a big decrease to the value of the dollar. If everyone all of a sudden has $11,000 more to spend wealth is relatively less scarce. This would lead to a jump in inflation, much moreso than what is normal. In the end we'ed be lucky if the jump in inflation wasn't more than the jump in wealth.