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Based on a thorough analysis, Bloomberg estimates that the U.S. government is prepared to lend more than $7.4 trillion on behalf of American TAXPAYERS, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago. According to Bloomberg, “the unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s…

The commitment dwarfs the only plan approved by lawmakers, the Treasury Department’s $700 billion Troubled Asset Relief Program. Federal Reserve lending last week was 1,900 times the weekly average for the three years before the crisis”. Given the gigantic future financing needs of the US government it is, therefore, not surprising that the cost of ensuring US Treasury bonds against default has quadrupled over the last six months.

FYI…I know it’s been said before, but sometimes I have a hard time believing it’s actually happening.

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Technorati Tags: 15 Months, 1930s, American Taxpayers, Bloomberg, Credit Markets, Dwarfs, Economic Emergency, Estimates, Federal Reserve, Financial Institutions, Financial Markets, Hard Time, Lawmakers, New Deal, Pledge, S 700, Six Months, Treasury Bonds, Treasury Department, Trillion