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October 7, 2008 
When I first heard that the Federal Reserve was planning a new program to help encourage business loans, I was wondering … weren’t we told the bailout last week would fix our credit problems?
You may think, “Of course, they are planning on how to use the $700 billion’. You would be wrong.
The new program is separate from the bailout last week.
What’s the number then? Lets just do a quick tally of some numbers we’ve seen float by:
- Unspecified, encourage business loans (we had a loss of 11% in the last month, from $1.82 trillion to $1.6 trillion from 9/10/2008 to 10/1/2008, so we can expect the government wants to stabilize this, is it safe to say $200 billion then? ), we will pick $200 billion approximately
- $700 billion bailout, wait, that ended up to be $810 billion, as $110 billion in tax breaks were required to get it passed
- $85 billion “loan” to AIG, lets face it, $61 billion is already gone, we’re not seeing any of this loan back
- Federal Reserve made money “available” on 10/2/2008 to the tune of $410 billion
Now we have the government trying to help businesses get critical loans that they need to operate. This is because no one wants to lend. Isn’t that what the original “$700 billion” was supposed to address.
The approximate cost now, is $1.5 trillion.
Please keep us honest, if you see anything we have counted twice, or misrespresented, let us know.
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5 Comments 
bailout, business loan, cost, Fed, Federal Reserve, tax breaks, Total cost
