CBO Updates Bail-Out Cost
The Congressional Budget Office has released its latest estimate of the costs of the Troubled Asset Relief Program (TARP), a.k.a. "the bailout(s)." The results will probably drive some folks insane with rage since they don't exactly fit the Approved Narrative (tm). But here's the story in a few numbers:
Original authorization: $700 billion.
Currently estimated costs:
Wall Street bailout - $ 7 billion
Detroit bailout 19 billion
Main Street bailout 12 billion
Other 2 billion
---------------
Total $25 billion
(Detail may not add to Total due to rounding.)
The "Wall Street bailout" is what you think it is: aid to banks and to AIG. Yes, the CBO estimates that the financial industry bailout will be a money-maker for the Treasury. The "Detroit bailout" is aid to the automotive industry (i.e. GM, Chrysler, and some of their suppliers). The "Main Street bailout" represents the TARP's share of the estimated costs of the Home Affordable Modification Program (HAMP).
The basic message is this: the Wall Street bailout cost taxpayers nothing, while the costs of the GM and Chrysler aid and the mortgage modification program for ordinary individuals have been chicken-feed (by federal budget standards, anyway).
But but but but but...! How can it be? I was told we gave away billions! Trillions! Gazillions, even! Can it be that someone has been exaggerating...?
BTW, I should mention that the TARP doesn't encompass the cost of taking Fannie Mae and Freddie Mac into conservatorship. I don't think anyone has a very good handle on what that will wind up being, but it could certainly turn out to be significant.
Original authorization: $700 billion.
Currently estimated costs:
Wall Street bailout - $ 7 billion
Detroit bailout 19 billion
Main Street bailout 12 billion
Other 2 billion
---------------
Total $25 billion
(Detail may not add to Total due to rounding.)
The "Wall Street bailout" is what you think it is: aid to banks and to AIG. Yes, the CBO estimates that the financial industry bailout will be a money-maker for the Treasury. The "Detroit bailout" is aid to the automotive industry (i.e. GM, Chrysler, and some of their suppliers). The "Main Street bailout" represents the TARP's share of the estimated costs of the Home Affordable Modification Program (HAMP).
The basic message is this: the Wall Street bailout cost taxpayers nothing, while the costs of the GM and Chrysler aid and the mortgage modification program for ordinary individuals have been chicken-feed (by federal budget standards, anyway).
But but but but but...! How can it be? I was told we gave away billions! Trillions! Gazillions, even! Can it be that someone has been exaggerating...?
BTW, I should mention that the TARP doesn't encompass the cost of taking Fannie Mae and Freddie Mac into conservatorship. I don't think anyone has a very good handle on what that will wind up being, but it could certainly turn out to be significant.