2008 Federal Bailout

If the 700 billion dollar dollar bailout isn't coming from taxpayers money where is the cash coming from?

Answer

Wiki User
02/28/2013

borrowed money from China

Answer

Two possible sources: Borrowing and Printing money.

The US government can borrow the money from individuals, either US citizens, foreigner individuals, or foreign governments. Problem is, US citizens don't have enough to lend (and if they had any sense, wouldn't do it anyway). So the vast majority of this debt will be held by foreign interests. China already holds a huge part of our debt. And Islamic nations are getting more and more of it. This will make matters much much worse.

Or the treasury can just print more money. $700 billion more to be exact. This will cause rampant inflation.

I say let the stock market collapse. What we're going through is simply a "correction". Sure, it's a giant correction, but it was a giant error that is being corrected. And that error was committed by the US government, forcing banks to hand out loans to people who couldn't afford to pay them back.

And the thing that really stinks about this is, whatever happens with the bailout, 20 years from now, when all the dust settles and the economy is back on its feet, some liberal politician will start moaning about how unfair it is that low-income families can't get loans to buy houses, and we're going to have to go through all of this again.