Cost of Economic Rescue Now Reported at $8.5 trillion

by Sabrina I. Pacifici on November 30, 2008

LA Times – Heavy spending to battle the financial crisis is unlikely to abate soon. Analysts say next year’s deficit could top $1 trillion, by Jim Puzzanghera: “Just last week, new initiatives added $600 billion to lower mortgage rates, $200 billion to stimulate consumer loans and nearly $300 billion to steady Citigroup, the banking conglomerate. That pushed the potential long-term cost of the government’s varied economic rescue initiatives, including direct loans and loan guarantees, to an estimated total of $8.5 trillion — half of the entire economic output of the U.S. this year…”

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