The Big Picture has a good post about what the true potential cost of the government's bailout of Wall Street could cost us: over $ 2.25 trillion. The break down is:
- $250 billion of capital into banks;
Guarantee $1.5 trillion in new senior debt issued by banks;
Insure $500 billion
in deposits in noninterest-bearing accounts (primarily businesses accounts).
Now, with any luck, the government won't have to make good on these promises. Well except for the $250 billion invested into banks in exchange for shares with NO VOTING RIGHTS. So we take the risk and get no say in how the bank is run. Just freaking marvelous!
With the $2 trillion promised by the European Union countries, we are talking over $4 trillion in government guarantees. Yes, Wall Street has left us one very large hangover.