How much would it take to turn around the sinking economy again?
The Obama administration has been considering for the government and private sectors to purchase so-called toxic assets from the struggling financial institutions. According to the new estimate, the amount of government and private funds combined will be "on an initial scale of up to $500 billion, with the potential to expand up to $1 trillion."
In addition, the Federal Reserve announced it would commit up to $1 trillion to purchase bonds or other assets backed by consumer loans. The Treasury will guarantee a portion of the Fed investment by putting up $100 billion, an increase from a $20 billion commitment that Bush administration had announced.
Adding all up along with the stimulus plans, the U.S. could throw as much as $3 trillion more in government and private funds into the fight against frozen credits and job losses. And, I think that's only a best guess at this point in time. What's your number?
(Click to see the full sized editorial cartoon!)
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