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Money trail hard to follow in US bailout
Calcutta News.Net
Sunday 30th November, 2008
While the US government is spending an unprecedented amount of money to restore the country's economy, analysts have found it difficult to predict the final price of the overall recovery effort.
The government is implementing a plan to commit more than $770 billion to rescue America's financial institutions, which is on top of $152 billion in tax cuts and other economic incentives.
The Bush administration has spent large amounts of money to rescue mortgage lenders Fannie Mae and Freddie Mac, as well as the huge insurance company AIG.
While more bailouts are being considered for banking giant Citigroup and the US automakers, the incoming administration of President-elect Barack Obama is also proposing a two-year economic stimulus package estimated between $300 billion and $700 billion.
Economists say by the time the stimulus packages run their full course, the cost will be around US$2 trillion, much of it coming from other countries.
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