"The debt spending by the Government - and even worse, the acceptance of it by Taxpaying Americans - is completely insane - by any definition of the word. But first I wanted to comment that yesterday I had speculated that the cost of Bernanke's housing market support proposals sent to Congress a week ago would cost Taxpayers in the range of $500 billion to one trillion dollars. Barclays is out today saying that Bernanke's Fed alone is likely to spend $500 - $750 billion buying mortgages. But Bernanke is also asking for Obama to chip in Taxpayer money. It remains to be seen just how much QE + deficit spending will total on this next round of economic "stimulus," aka big bank bailout confetti. Here's the report from Bloomberg this morning: LINK
"I don't know about anyone else, but the situation surrounding the latest request by Obama to raise the debt ceiling had me a bit confused. I had thought that the deal reached in August ultimately raised the ceiling to $16.4 trillion. So I researched it a bit because the media is making it sound like what Obama is asking for is in addition to what was done in August. So here's how it works: In Feb 2010 the debt ceiling was set at $14.294 trillion. On August 2 it was raised to $14.694 trillion so that the Government didn't have to shut down until a new ceiling was reached. Then in September, a deal was reached that put the ceiling at $15.2 trillion but would ultimately take the debt ceiling up to $16.4 trillion, contingent on budget cuts. So right now the Treasury is at the $15.2 trillion limit and Obama has to get Congressional approval in order to utilize the final $1.2 trillion of capacity.
"What's getting lost in all of this is that since August 2, the Government has borrowed $200 billion per month ($15.2 - $14.2 divided by 5 months). This is insane. The debt limit agreement in...."