Will There Be Additional Bailout Money Going To The Banks After The $750 Billion?
It seems there may be and this is crazy. The WSJ reported that President Barack Obama’s 2010 budget includes a clear warning that the nation’s banks may need substantially more government aid if the economy deteriorates further. The proposal unveiled Thursday includes a $250 billion placeholder for government losses associated with additional financial-rescue efforts. Those losses would come from the possible deployment of an additional $750 billion — a sum that would double the size of the current bailout — and are based on estimates that the government would get back two-thirds of its investment.
Also in the spending plan is a crackdown on mortgage fraud and $1 billion in funds for an affordable-housing trust fund.