Senate Democrats lined up a show panel to testify on the need for a new TARP. The consensus seems to be that Congress will need to come up with at least $600 billion more, with another $600 billion to be printed up by the Federal Reserve:
Noting the $350 billion spent by the government to shore up faltering banks and another $350 billion waiting to be allocated — as well as the $800 billion-plus economic stimulus package — the economists warned that as much as $600 billion more will be required from lawmakers to re-capitalize weakening banks, remove toxic assets from their balance sheets and address the foreclosure crisis. On top of that, the Federal Reserve might have to match that with another $600 billion to cover just the cost of bad assets on banks’ balance sheets. “Until we stabilize the housing market, it’ll be tough to do anything about the [sinking] economy,” said Tim Adams, managing director of The Lindsey Group and a former Treasury undersecretary.
So $1.2 trillion, on top of the $1.1 trillion debt plan being pushed through Congress. And then we have a half-trillion ‘transportation’ bill, a few hundred billion for health care, and a few hundred billion more for the automakers.
Not only is there more spending to come, the ‘stimulus’ package is the tip of the iceberg! Right now it looks likely to be about one-third of the total new spending called for Barack Obama — above and beyond the already bloated federal budget.