Who'll Bail Out Uncle Sam?

CBS' Mark Knoller On The National Debt, And Who Picks Up the Tab

(CBS)  By CBS News White House correspondent Mark Knoller.

---

The federal government may seem like a financial knight on a white steed riding to the rescue of big companies in trouble. The irony is that Uncle Sam’s got enormous money problems of his own.

The government is far deeper in debt than any of the companies it’s bailing out.

As of this morning, the national debt stands at over $9.634 trillion. That’s trillion - with a "T." And that’s nearly $4 trillion more than it was on the day President Bush took office.

This year alone, it’s costing taxpayers more than $230 billion just to pay the interest on the national debt.

And it’s getting bigger every day thanks to the relentless rush of the government spending money it has to borrow. The federal deficit for the fiscal year ending September 30 is expected in the range of $400 billion - close to the all-time high.

In fact, the government doesn’t have the $85 billion needed to bailout insurance giant American International Group.

The treasury department announced this morning it would auction new debt to raise funds for the Federal Reserve’s rescue plan for AIG.

The Fed didn’t need President Bush’s permission for the bailout, but he supports the action.

“The president’s economic advisors had determined that some of these companies were so big - that to allow them to fail would have caused even greater harm and damage to the economy,” explained Press Secretary Dana Perino at today’s White House briefing.

And despite the government’s intervention to keep a distressed company from failing, Perino insists “the free market is alive and well.”

“We have systems in place here in our country to be able to deal with shocks to the system like this,” she said.

The rescue plan means taxpayer funds are being put at risk, but Perino said “taxpayers might be harmed even worse” if the collapse of a major company caused broader economic damage.

She declined to repeat President Bush’s oft-stated assurance that the “fundamentals” of the economy are strong. But she said the economy has the strength to deal with the strains it’s now facing.

“We’ll weather the storm and be better for it,” she asserted.

But where does the federal government go when it needs a bailout? Taxpayers need only look in the mirror.

[easeup-2009]

Is that guy wearing a disguise?

[easeup-2009]

Take off that modern suit and that Knoller dude looks like he stepped right out of a civil war photograph.

Posted by rafterman1 at 01:35 PM : Sep 17, 2008

ROFLMAO!!!!!

[jtdev1]

Who%u2019ll Bail Out Uncle Sam?

Can anyone say China?

[pmsnbc1]

This is jounalism?

[rwassel]

But John McCain says that "the fundamentals of our economy are strong", and that "we are a nation of whiners" when it comes to the economy!

Who am I to believe?!?

[rwassel]

Is it a coincidence that the last three recessions in our country have been under a Republican president?

[gwjackie]

That is not this persons name it is john McCains last girlfriend. she is dressed up a bit but old john still knows her.

[Michael Arnold]

Before this is repaid, the US Gov. will default. That''s a fact--Jack.

Insanity.

[gwjackie]

Hey John the bludge goes in the front of your depends not the back [he does not know any difference cindy says] poor guy!

[easeup-2009]

Is it a coincidence that the last three recessions in our country have been under a Republican president?

Posted by rwassel at 02:05 PM : Sep 17, 2008

Actually the last recession had already started when Bush took office and right now we are technically not in a recession (3 straight quarters of negative GDP growth).

But please don''t let facts get in the way--RANT ON!

[scorpio59er]

re: "the national debt stands at over $9.634 trillion. "

Try DOUBLING that number.

The takeover of Freddie and Fannie and the guarantee that housing will continue to tank and more people will be pushed over the edge on their mortgages leaves Uncle Sam on the hook for TRILLIONS.

SEE:

Housing Lenders Fear Bigger Wave of Loan Defaults

http://www.nytimes.com/2008/08/04/business/04lend.html?em=&adxnnl=1&adxnnlx=1217957113-pFlrUGvr7OAaQuMcyPKCbg

The fun has only just begun.

[easeup-2009]

"McCain is the ultimate opportunist and gold-digger. He married a heiress and at last count owns 7 homes"


Are you kidding me??? Kerry could buy & sell McCain ten times over by marrying rich!!!

Brain-dead libs......

[chivikos]

Bush should be impeached today, put on trial tomorrow and sent to maximum security prison for life.

[benice6]

ha ha ha!!!!!!!!!

I was on this very web site months ago explaining how it is important to learn to grow and can your own food-like I know, ...and how it''''s important to learn to hunt and smoke your meat(that means preserve your own food for you yankees who are about to have to pimp out your wives to provide a can of beans for your family as the dominoe effect takes out your job, your 500K house and your daughters ***** riding lessons.),.

My point is---Invest in gold,..learn to grow your own food, and get ready to pay survivalist''''s(though I also happen to be married with a college degree too)like me $20 for a can of beans, or $100 for a "beef roast from my smokehouse.)

Ha!!!!!!

[jukbx]

That''s right. Clinton was in office when the economy started going downhill. Bush just got blamed for it.
As always the dems never take responsibility for any financial problems in our country.
Posted by scorpio59er at 02:13 PM : Sep 17, 2008
+ report abuse
Is it a coincidence that the last three recessions in our country have been under a Republican president?

Posted by rwassel at 02:05 PM : Sep 17, 2008

Actually the last recession had already started when Bush took office and right now we are technically not in a recession (3 straight quarters of negative GDP growth).

But please don''''t let facts get in the way--RANT ON!

[jntlw-2009]

According to Senator Reid, the government has not required any oversight for all the bailouts of Freddie MAc, Fannie Mae, or AIG. Hundred''s of millions of dollars and this administration did not put any oversight into the deal. Republicans are incompetent and unable to do business in any ordinary sense of the word. Would you give millions of dollars to crooks and then have no oversight? OMG the Republicans must go NOW!

[yam250]

I would like to know if the IRS is going to be looking into this mess. Either AIG and all the other companies filed FALSE tax returns or the never paid any taxes. Well you had 8 years of Bill and 8 years of Bush. Come on people wake up. Which one was better.

[easeup-2009]

But Kerry who by the way is NOT running for president did not say that the break off for the middle class is 5 million. How out of touch is that?

Posted by fedupwithit1 at 02:19 PM : Sep 17, 2008


uhhhh... he was joking--I guess everyone got it except you.

[benice6]

ha ha ha!!!!!!!!!

I was on this very web site months ago explaining how it is important to learn to grow and can your own food-like I know, ...and how it''''s important to learn to hunt and smoke your meat(that means preserve your own food for you yankees who are about to have to pimp out your wives to provide a can of beans for your family as the dominoe effect takes out your job, your 500K house and your daughters ***** riding lessons.),.

My point is---Invest in gold,..learn to grow your own food, and get ready to pay survivalist''''s(though I also happen to be married with a college degree too)like me $20 for a can of beans, or $100 for a "beef roast from my smokehouse.)

Ha!!!!!!

[strangeworld]

You know *** well who will bail out the federal government...the middle class taxpayer and some foreign countries. The wealthy in this country will run and hide in times of financial turmoil - apparently not patriotic enough to put country first when it comes to paying their fair share...then the minute that the country is turned around through the sacrifice and hard work of others, they emerge again from beneath their rocks and once again start sucking the blood out of the middle class worker and taxpayer. There''s no shortage of examples that show how republican economic policies have screwed up this country for most Americans.

[thevicar1]

National Debt Shmashinal Debt!
Its just a number on a ledger sheet, it doesnt represent real dollars. Its just there to balance the books.
Nothing a simple little eraser cant fix.

[easeup-2009]

lol what do you mean? I still remember the election of 2000 between Gore and W. The huge debate was what to do with the budget surplus. Of course Bush decided to blow it and add to the Debt by 4 trillion but hey thats neither here nor there.

We had that budget surplus even AFTER Clinton paid record amounts on the national debt. And the economy was bad in 2000 I DONT THINK SO.

Posted by fedupwithit1 at 02:26 PM : Sep 17, 2008

LOL You don''t even know what a recession is!!!! For God''s sake hit wikipedia or google it before you make yourself look anymore foolish!

UNBELIEVABLE

[misssuzq]

"Who%u2019ll Bail Out Uncle Sam?"

Why, the U.S Taxpayers, who else?

Like we are with the foreclosures.

[b_baggins]

"According to Senator Reid, the government..."

That always gets a cynical laugh out of me. Typical. As if Reid is talking about some entity over which he has no control. Yep, being Senate Majority leader, poor Reid can do nothing but watch helplessly as this giant monster called government fails to perform any oversight on America''s financial institutions. All those republicans who don''t hold any committee chairmanships have totally prevented Reid from engaging in any kind of essential reform. The voters must make Republicans have NEGATIVE committee chairmanships. Zero isn''t good enough. Negative chairmanships are required before Reid and fellow Democrats can accomplish any sort of committee oversight. After all, even having a Republican in the oversight committee room prevents Reid or the committee chair from even being able to feed themselves, the evil is so palpable.

[benice6]

ha ha ha!!!!!!!!!

I was on this very web site months ago explaining how it is important to learn to grow and can your own food-like I know, ...and how it''''''''s important to learn to hunt and smoke your meat(that means preserve your own food for you yankees who are about to have to pimp out your wives to provide a can of beans for your family as the dominoe effect takes out your job, your 500K house and your daughters ***** riding lessons.),.

My point is---Invest in gold,..learn to grow your own food, and get ready to pay survivalist''''''''s(though I also happen to be married with a college degree too)like me $20 for a can of beans, or $100 for a "beef roast" from my smokehouse.)

Ha!!!!!!

[thevicar1]

Again I ask: Are we stupid, or are we VERY SSTTUUPPIDD!!!!!! ------------------------------------------------------------ Posted by walt1944


We are we stupid, unless we count you, then we are VERY SSTTUUPPIDD!!!!!!

[easeup-2009]

Milk was $4 at my grocery store yesterday. But it was $2 when Bush took office.

Posted by fedupwithit1 at 02:29 PM : Sep 17, 2008

How is that Bush''s fault? Milk is more expensive because of ethanol. You do want to end our dependence on foreign oil, don''t you?

[thevicar1]

Milk was $4 at my grocery store yesterday. But it was $2 when Bush took office ------------------------------------------------------ Posted by fedupwithit1


Its better milk

[b_baggins]

fedupwithit,

what was the price of milk when the Dems took over congress in 2006?

Answer: $2.40 a gallon.

[kashmirbaby]

wow, now that you mention it, milk did use to be a lot cheaper! Gas too...what happened? Oh yeah...nevermind.

[perceptions5]

AIG has a "line of credit" for $85 billion for two years.

DOESN''T mean that AIG will borrow any money at all.

IT ONLY means that IF they need the loan and yes it''s a loan then they''re pre-approved.

My fellow Americans our corrupt liberal wolfpack press is trying to help the Democrats which is WHY YOUR NOT GETTING THE ENTIRE STORY....

and this is really sad...........

[perceptions5]

wow, now that you mention it, milk did use to be a lot cheaper! Gas too...what happened? Oh yeah...nevermind.


--------------------------------------------------------------------------------

Posted by KashmirBaby
--------------------------------------

It''s called Nancy and Harry and together they "run" our 110th Do Nothing Democrat Congress.

..........Yeah......"Two Years Is Enough".

[grandesign]

"The treasury department announced this morning it would auction new debt to raise funds for the Federal Reserve%u2019s rescue plan for AIG."

I love it when a play comes together. Can we create templates of that rescue plan and do it multiple times for many troubled large companies?

[thevicar1]

But it wont be the wealthy as long as we have republicans in the white house. It will fall directly on the poor and middle class and the wealthy get a never ending free ride ------------------------------------------------------ Posted by rharrin1


Thats where you are wrong!

After 300 Years of Tax Cuts for the rich people you Liber-Brats hate so much, when it comes time for Uncle Sam to get bailed out, the Uber-Rich will have MORE than ENOUGH resources to do it!

Thats been the plan all along!

[ocasanas]

Oh I know this one, I know this answer: the rest of the world will bail us out!

[perceptions5]

But it won''''t be the wealthy as long as we have republicans in the white house. It will fall directly on the poor and middle class and the wealthy get a never ending free ride.


--------------------------------------------------------------------------------

Posted by rharrin1
--------------------------------
rharrin1, you never stop with the liberal propaganda do you?

Did you see where your boy, Obama collected $9million from America''s rich liberal elite snobs in Hollywood last night?

Did you see where your boy, Obama collected $8million form America''s rich liberal elite snobs in San Francisco last month?

Seem like the rich elite liberals don''t like to donate to the poor and they don''t like to serve our nation in the military but they have plenty of money to give to the most unqualified person to ever run for POTUS, The Emperor Without Clothes, Obama.

.........really sad indeed and completely true.

[thevicar1]

Oh I know this one, I know this answer: the rest of the world will bail us out! ------------------------------------------------------ Posted by nfclrd


I dont think so!

As this mighty ship continues to sink into the dark abyss, the best we can count on from the rest of the world is to rearrange the deck chairs.

[rupket-2009]

"Who%u2019ll Bail Out Uncle Sam?"

Answer: The democrats!!!

[karl2m]

ever since Reagan came to power, America has cultivated unbridled greed. The result is that America has been living above its means for many years now. the idea of "less government" was pushed, simply because it allows the rich to keep their money. government regulations were lifted, and now finally the truth is coming out about the republican policies : uncle sam has a flat wallet, and has deferred the cost of these idiocies -9.6 trillion- to it''s children. Uncle sam has to hold up his hand to the rest of the world. on top of that, america has been stupid enough to go to war in the middle east, which is at the same time a powder keg and one of the main creditors to the money-losing policies of bush. i simply can''t understand how americans can even consider to vote for a republican again.
before someone tells me that i omitted clinton: i did so because most of the time he had to work with a republican congress, and also because at least he did what he could.

[pastdue1]

Thank God, Bush didn''t get his privatization for Social Security through. But, there is a nagging feeling that it has been and is being raided to fix our current corporate problems.

[txlakeside]

gosh perception ... I guess you forget it takes 2 to tango. The repubs have had the last 8 years to get it right ... but wait, they had to cut the taxes for those making over $250,000 a year ... the same folks that run the investment banks, the oil companies and the insurers.

The repubs have had their chance now it is time for some real change ... not the 22 years McSame has been in politics and never got any thing done! With a 90% vote as Bush does record it will be just more of the McSame.

[thevicar1]

what was the price of milk when the Dems took over congress in 2006? Answer: $2.40 a gallon. [Posted by frgough] Oh man! And what was the price of milk in 1993 when Bildo took over? $1.25 per gallon. Seems like a trend. --------------------------------------------------------- Posted by Hillary_FTW2


Hmmm...seems like MILK is the key.

[thevicar1]

ever since Reagan came to power, America has cultivated unbridled greed ------------------------------------------------------ Posted by karl2m



Yeah, but what was the price of Milk then?

[culturechang]

There is no one to bail out the treasure. that is why it is not the role of govt to rescue corporations and enter into the speculative real estate, mortgage, and insurance business.

[easeup-2009]

Googled lists of recessions there was no recession at the end of the Clinton term and the only blip on the radar in the early 2000''''s was caused by 9/11. Which Clinton didnt have anything to do with.

250 Billion just in interest, now that is a scary number.

I wonder what percentage of the total tax reciepts that is? We need a balanced budget amendment to the Constitution. Most states have one why not the Feceral Gov.?

Posted by fedupwithit1 at 02:44 PM : Sep 17, 2008

March 2001-November 2001

Did you link Google through Moveon.org?

[smarmsy]

Sounds like Perceptions5 thinks we did not bail out AIG, and time4truth2 thinks the current economy is not bad. No wonder you two are right wingers. You''re completely nuts.

[sepa2]

Again having been working for 40 years I lived through the Carter years and here are the facts:
Now tell me how "bad" the economy is today:

2008 Unemployment 6.1% 1982 9.7%
2008 inflation 5.6% 1980 13.58%
2008 Gross Domestic Product 3.2% 1980 -7.83%
2008 Prime interest rate 4.75% 1981 18.87%

Just think what I lived through thanks to the Nobel prize winner:
Unemployment almost 10% Inflation over 13%, economy losing 7% and interest rates of 18%
and we hear about our "bad economy" now???

Posted by time4truth2 at 02:30 PM : Sep 17, 2008
The same prize winner initiated energy diversification programs. Encouraged fuel economy, started energy reserve. Imagine how many engineering jobs it may have created and around 2008 what would be our standing in energy equation.
He was replaced by your hero, Mr. Reagan and just like happened with the current mortgage crisis he let loose all the money on loose investment. Of course it created instant jobs and prosperity but unfortunately Bush Sr. had to bear the effects later. He also initiated deregulation and we are reaping the benefits now. Being an engineer it is beyond me how you cannot see the shallowness of those policies. Of course most do not care so long as they have a job. And regarding numbers you listed many say it is not Carter''s fault and he happened to take the blame.

[ubrew12]

Article: "despite the government%u2019s intervention to keep a distressed company from failing, Perino insists %u201Cthe free market is alive and well.%u201D "

Its hardly a free market if the gov''t bails companies out with money it doesn''t have because they are ''too big to fail''. Its very much a socialist market for those companies. Presumably, the gov''t itself is ''too big to fail'', despite being $9.6 trillion in debt.

Ever wonder who in this chain of debt is considered NOT ''too big to fail''? Look in a mirror.

This is 100% a creation of supply-side Republicans, esp. Reagan and Bush. It''s amazing to listen to their ''explanations'' even today. Truly, these people would rather see our children drowning in debt than admit they were wrong.

[easeup-2009]

Idiot shouldnt have told me to google recessions just makes them look even worse lol

ROFL at the Vicar! good one we shouldn''''t take ourselves too seriously.

Posted by fedupwithit1 at 02:49 PM : Sep 17, 2008

An idiot gets on a message board, gets proven to be 100% clueless and resorts to childish name-calling.

[thevicar1]

the govt itself is ''too big to fail'', despite being $9.6 trillion in debt [...] Truly, these people would rather see our children drowning in debt than admit they were wrong ------------------------------------------------------ Posted by ubrew12



Cry me a River...
by the time our ''children'' get a handle on this stuff, 9.6Trillion will be like a fardt in a windstorm.