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Archive for Monday, December 7, 2009

Administration to slash bailout estimate

December 7, 2009

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— The Obama administration plans to cut its estimate of the projected costs of the government bailout program by more than $200 billion, a Treasury official said Sunday.

The official said the administration now believes the cost of the program will be at least $200 billion below the $341 billion estimate it made in August.

The official, who spoke on condition of anonymity because the administration’s new projection has not been presented to Congress, said the reduced cost estimate reflected faster repayments by big banks and less spending on some of the programs.

The administration’s estimate that the $700 billion financial rescue program will cost at most $141 billion is down sharply from the estimate of $341 billion made in the administration’s mid-session budget review in August.

The official said the new estimate will become part of the administration’s new budget, which President Barack Obama will present to Congress in February.

Comments

dumbjayhawk 4 years, 3 months ago

This is why we should have let these banks fail. They already proved they are incompetent as it pertains to extending credit. By bailing them out with our money we have simply encouraged and enabled further delinquency.

Let's have some wisdom from Thomas Jefferson: "We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty or profusion and servitude. If we run into such debt, as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our calling and our creeds... [we will] have no time to think, no means of calling our miss-managers to account but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers... And this is the tendency of all human governments. A departure from principle in one instance becomes a precedent for [another]... 'till the bulk of society is reduced to be mere automatons of misery... And the fore-horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression."

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