Bailouts, rescues, cash injections in U.S. economy total $8.5 trillion
Pacific Business News (Honolulu) - by Mike Sunnucks
Federal bailouts, equity buys into banks and investment houses, liquidity infusions by the U.S. Federal Reserve Bank, loan guarantees and economic stimulus checks now total $8.5 trillion, according to various estimates.
That equates to about 60 percent of U.S. gross domestic product, which will come in around $14 trillion, according to economists.
The $8.5 trillion total in bailouts is nearly twice the size of annual GDP in Japan and accounts for more than the annual GDP of every national economy except the U.S., European Union and China, according to federal data.
The $8.5 trillion includes the $700 billion bank and Wall Street bailout; federal takeovers of Fannie Mae and Freddie Mac; individualized bailouts for Citigroup and American International Group; and various cash infusions into financial and lending markets by the Fed. The $700 billion includes federal equity buys into Bank of America Corp., JP Morgan Chase & Co., Goldman Sachs Group Inc. and other financial institutions.
The total was determined by various economic analysts as well as the San Francisco Chronicle.
Related Industry News |
Latest News |
Most Viewed Stories |
Most Emailed Stories |
