Where as all the money gone during the credit crunch?
Governments have put billions of borrowed money into their economies, to replace the money the financial systems have lost. So who now has the lost money, which we as taxpayes have to pay back. Remember all money that is officially destroyed is accounted for.
Tags: billions, Credit, crunch, during, gone, governments, lost money, money
Related Items
- Where has all the money gone during the credit crunch to leave everyone so much in debt?
Ok - we are now in the middle of this credit crunch and companies, banks etc have all lost money and are going to the wall but where has all this mone... - Besides Quitting smoking and stopping using credit, what is one thing you have done that saved you money?
I put those two because they were the most obvious ... - What are good products to buy during black friday with the purpose of reselling to make money?
I see a lot of people doing it on ebay and all so I figure why not. What are some good buys this year that would make good investments? Items that are... - What type of bank account should a student with no credit have?
I just barely turned eighteen in may and I'm about to get a job once I finish school. I want to know what type of bank account has interest, no overdr... - Bank of America withdraw from my bank account a payment without my consent. What should i do?
I have a credit line with Bank of America and they withdraw money from my personal account (not with B of A or any of its affiliates) without my conse... - How long does a company have to take money from my account for goods delivered?
I ordered a cotbed matress and bedding set from a well known company online on the 3/4/07. All the items were delivered on the 20/4/07 but the money h... - What is the best way to transfer money abroad?
I'd like to send my Gran some money, she lives in Turkey and I'm really not sure how to go about it. Do I put the money on a credit card and send that... - What are your best money saving tips?
I recently moved apartment and my credit cards have taken a beating! Now all the major things are paid for, I need to clear my debts and build up some... - How do i tranfer money from my moneybookers account to Skype?
I have some money in my Moneybookers account and i want to buy Skype credit with them, can anyone tell me how i do that? ... - How does a money order work in terms of eBay?
I don't have a credit card so I guess my best bet would be to use a money order as payment if I decide to bid on and win an item if that method of pay... - If I owe money to the irs can the get the money from my coporate checking?
I am planning on forming a corporation my personal credit is jacked up and so is my check systems. I have looked at some the bank account aps and the ... - I have a brilliant business idea and am looking for some way to make it happen/sell it!?
I have an amazing business idea that could generate billions of $. I need some way to sell it, where I continually get paid as it brings in money. I c... - I owe money to credit cards and collection agencies, if I start a mutual fund or ira could they take that m?
I want to plan for retirement. I do owe money to credit card companies. So if I open an ira or mutual fund, can they get access to that money and take... - How can I get money off my credit card without any fees?
I wanted to take money off my credit card, but somehow as a purchase (not as a cash advance). I was thinking about using Paypal to send money to mysel... - What info is needed to transfer money from 1 bank to another?
I need to have some money transfered into my bank account from another bank account. Their bank account is at a different, out of state bank which is ...
September 7th, 2010 at 7:09 am
i keep mine indoors. i also know that banks need it to beat the recession
September 7th, 2010 at 7:36 am
The IMF estimates that the US banking system will lose $2.7 trillion on bad mortgages and another $1.2 trillion in bad credit card debt and bad auto loans before the crisis will be over. That is more money than all the US banks made in profit since the US became a nation.
The only reason that US banks are still afloat is that interest rates have been reduced to near zero allowing them to make enough money on the remaining assets to cover the bad loans, $450 billion in FDIC loans, $850 billion outstanding at the Fed discount window, $700 billion in TARP funds, and another $1.2 trillion in other programs from the Fed.
Even banks that are considered stronger like Goldman Sachs would probably currently become insolvent if they didn’t get the government assistance including reduced interest rates, $20 billion from AIG, $17 billion in FDIC near zero interest rate loans, and access to the $850 billion Fed discount window. All of this is being provided when it is not really a commercial bank.
If the banks do no recover a significant part of the losses in higher profits in the next 3-4 years before interest rates rise and the programs are cut back, many will become insolvent (higher interest rates will cause the banks to again not be able to cover the debt).
So in reality, there isn’t any money left. It is all being used to cover the bad loans.