The Direct Cost of Government Intervention (So Far): $2 trillion

The phrase “spending like a drunken sailor” has officially taken on new meaning:

Obama, Democrats plan $500B economic package

Congressional Democrats and President-elect Barack Obama are laying the groundwork for quick enactment in January of a giant, two-year economic rescue package that will total about a half-trillion dollars.

His economic team in place, Obama has tasked his aides with assembling an ambitious measure to not only swiftly pump money into the battered economy, but also create 2.5 million new jobs, send a tax cut to the poor and middle class, and make massive government investments in energy-saving and other technologies designed to pay for themselves in the long run.

Some senior Democratic lawmakers put the cost of the package as high as $700 billion, a figure Obama’s team calls premature and several Democratic aides said was unlikely. One top Democratic congressional official, speaking on condition of anonymity because talks on the economic rescue measure are ongoing, said it will probably cost between $400 billion and $500 billion over two years.

And: Feds unveil plans to unfreeze consumer debt market:

The government has introduced a pair of new programs that will provide $800 billion to help unfreeze the market for consumer debt which Treasury Secretary Henry Paulson calls vital to supporting the economy.

Paulson says key markets for consumer debt such as credit cards, auto loans and student loans essentially came to a halt in October. He says the new programs are aimed to get lending back to more normal levels.

Paulson says all the government programs have been aimed at supporting the lending that is vital to the economy.

So, in direct spending, the combination of the Bush Administration, Congress, and the future Obama Administration, have pledged to spend a total of $2 trillion ($700B for the “bailout,” $500 in a “stimulus” package, and $800 billion to “unfreeze” consumer debt, whatever the bloody hell that means*). And that’s in addition to the usual, already confiscatory spending levels.

We can all look forward to bitter, bitter times.

*More on the $800 billion: Fed says it will buy mortgage-related assets: It’s even worse, with some portion of $100 billion going to those perverted Leftist corporations Fannie Mae and Freddie Mac.

The Fed said it will purchase up to $100 billion in direct obligations from mortgage giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks. It also will purchase another $500 billion in mortgage-backed securities, pools of mortgages that are bundled together and sold to investors.

The $600 billion effort on mortgages came as the Fed also unveiled a new program to help unfreeze the market that backs consumer debt such as credit cards, auto loans and student loans.

The program on consumer debt will lend up to $200 billion to the holders of securities backed by various types of consumer loans. Treasury Secretary Henry Paulson had said recently that the government was working on the new program, which will be supported by $20 billion of credit protection provided by the $700 billion bailout fund.

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