I don't think we have to worry about saddling our children with $20 trillion of debt.
Most of the bailout money will be repaid initially by the people who borrowed it.
Then, once the economy recovers its health and starts running at a surplus (which will occur during Obama's first term), a lot more of the bailout money will be repaid. During Obama's second term, most of the balance will be repaid.
Any debt balance still remaining at the end of Obama's second term will be fully repaid by the time Joe Biden finishes his second term as president.
Subscribe to:
Post Comments (Atom)
2 comments:
Your out of your mind! Obama will never cut back his spending enough to have a surplus. When in this countries history can you remember there being a surplus? Dont say under Clinton because he didnt have a real surplus, he just borrowed more money from SS than normal.
Obama is relying on extra taxes from continued growth. What if the country doesnt continue growing? Maybe continues declining all the way thru his presidency. If that happends we are all in some serious debt.
That was the sales pitch but it doesn't appear to be likely. Take AIG for example. The total public commitment (TARP) to AIG so far is in excess of $150 Billion. This is almost twice what AIG's entire net worth was at the end of 2004 ($83 Billion according to NY Times), and almost three times that company's net income from 2001 - 2007 (source WTOP.com). Assuming AIG survives, how long do you think it will take them to repay this loan? It will almost certainly not be within Obama's first term, if ever. Meanwhile (assuming a 3% rate) we the taxpayers are paying $4.5 Billion per year interest on this loan.
Post a Comment