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Cost of Fed Expansion of Balance Sheet Is $30K Per American, Congressman Grayson Says

Posted Jun 03, 2009 12:10pm EDT by Tech Ticker in Investing, Recession, Banking

Those were just some of the harsh words Congressman Alan Grayson of Florida had this morning regarding Washington's handling of the financial crisis so far. His remarks were part of The Big Picture Conference--Capitalism After Crisis & Recession at the New York Athletic Club today.

To be sure,  while there's a huge risk in the government borrowing $10 trillion, the alternative was Great Depression 2, the congressman said.

Grayson also noted:

  • Sloppy thinking is leading policy decisions at the moment.
  • We can't manage systemic risk if we can't ID which parties are "too big to fail".
  • Why are we bailing out AIG if Goldman "first domino" said risk wasn't material.

    Actions are needed to ensure culprits are held accountable.

View Aaron's interview with Grayson, and stay tuned for more coverage from the conference.

103 Comments

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:17PM EDT

Is.... $$$ 30,000.00 The "REAL" Amount or Is It....HIGHER...!!!!!!!

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:28PM EDT

Borrow the 10 trillion dollars from whom?. China has stopped lending to america. And American leaders like Hillary Clinton "begging' the Chinese for more money. What a national disgrace. Where is this nations honor. America has become a laughing stock. Where is your pride Obamassiah? The Japs would rather commit hara-kiri.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:29PM EDT

Borrow the 10 trillion dollars from whom?. China has stopped lending to america. And American leaders like Hillary Clinton "begging' the Chinese for more money. What a national disgrace. Where is this nations honor. America has become a laughing stock. Where is your pride Obamassiah? The Japs would rather commit hara-kiri.

Wallym415 M
Wallym415 M - Wednesday June 03, 2009 12:29PM EDT

IF WE CONTINUE AT THIS CURRENT RATE OF PHYSICAL EXPANSION. WHAT WILL BE THE OUTCOME IN THE LONG RUN? ANOTHER DEPRESSION OR WORST. WHAT IF CHINA CALLS THE LOANS THAT WE CURRENTLY HAVE WITH THEM. WILL THEY TAKE OVER OUR GOVERNMENT OR WHAT?

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:29PM EDT

I find it refreshing that he is pointing out the obvious flaws in the bailout plan, perhaps at some risk of his relationships with more powerful colleagues and potential backers. Isn't this what we want our politicians to do?

Moxies
Moxies - Wednesday June 03, 2009 12:30PM EDT

HR 1207 was introduced by Ron Paul to audit the Federal Reserve. The people of America will regret the day that they did not vote for Ron Paul for he was and is, the most honest politician and an expert in economics.

AMDshortsRfools
AMDshortsRfools - Wednesday June 03, 2009 12:32PM EDT

Carter economics at it's finest.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:33PM EDT

Obamas' spending is out of control. Spend it on Job creation via infrastructure improvements not propping up unions and failed businesses.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:35PM EDT

not to worry - soon we will have minimum wage at 100.00/hr due to worthless money, the old debt will be wiped out (on paper), and all will be well with the world. -- what number comes after trillion??

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:35PM EDT

A Congressman with intelligence. Maybe they are not an extinct species, after all.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:38PM EDT

"commie sleeper agents Bronson was after in Telefon?"..............No need, the nation was gone commie.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:41PM EDT

Hey...."HARA-KIRI" Is what the....."Chinese" Are Going To DO....When We TELL THEM That....Their $$$$ 3.8 Trillion Are LONG GONE.....NO MONEY To Pay Them.....Ha,Ha,Ha,Ha,....

norman
norman - Wednesday June 03, 2009 12:43PM EDT

Kudos to Rep. Grayson for his acknowledgement and support of Ron Paul's effort at auditing the Fed. It's too bad we can't see Aaron's face when he realizes his faux pas in criticizing Ron Paul without any knowledge about this bill that the congressmen has been tirelessly pushing for a long time. Again, props to Grayson and may God bless his effort and keep him from ending up floating in a river somewhere.

Jon M
Jon M - Wednesday June 03, 2009 12:46PM EDT

The interview guy try to make Ron Paul sound bad for wanting to end the fed. Thank you Rep. Alan Grayson for giving him the credit he is due.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:46PM EDT

We need perp walks. There have been laws in place for decades to prevent this but our government is not enforcing them because of Washington, DC corruption that has sprawled to Chicago, NY, CT and San Francisco. It is hard to tell the difference between a mob boss, a politician, a lobbyist or a Wall Street mogul. This is the true corruption Thomas Jefferson predicted. Our legislative, judicial and executive branches have crossed over each other and we are left with Kleptocrats. The only way out is term limits and YOU. Grass roots efforts like Tea Parties and calling BS on mob like lobbiest that are fighting the will of the people (Can you say Prop 8, massive spending and Taxes for 3 examples). Whatever happened to accountability and living within your budget? Perp walks and term limits!!!

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:48PM EDT

Sadly, the masses are too stupid and believe all the hype. Ron Paul would have made a great president. He is a highly educated man and uses common sense rather than party favors when he assesses a problem. Has anyone been watching the markets today? I swear people are as dumb as rocks. Over 500k in addition to all the others are unemployed and the market is barely down 100 points. Factor in all the other real data like bad debt at banks, unemployment figures, foreclosures, dollar weakness, interest rates rising, and on and on... madness.

TomD
TomD - Wednesday June 03, 2009 12:51PM EDT

Great interview. Audit the Fed! We need answers about where our money is going.

Mark
Mark - Wednesday June 03, 2009 12:51PM EDT

Lets just default like Russia did in the 1990's and start over.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 12:51PM EDT

Ron Paul or Roux Paul - I don't care. Just vote who we have now out and keep doing it until somebody gets the message!!!!!

withheld
withheld - Wednesday June 03, 2009 12:53PM EDT

Someone tell me how BORROWING your way out of a fiscal crisis that was generated by OVER-BORROWING?? This is a concept a Democrat simply has no ability to comprehend.

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