would cost several trillion dollars

Mar 21, 2006
Las Vegas NV
In testimony Wednesday before the Senate Finance Committee, Geithner didn't say how much the new package would cost. He refused to give specifics, saying that Wall Street wouldn't benefit from advance signals. Paul Volcker, the former Federal Reserve Board chairman, told the panel that the cost of fixing the banks would cost several trillion dollars. No one took issue with that estimate. More government assistance would be needed, Geithner added, because the crisis is far from over. More money also will have to be used to get credit markets back to normal.
As the current president of the Federal Reserve Bank of New York, Geithner was a key participant in discussions with Paulson and Bernanke that led to the first bailout plan. "Obviously, you played an instrumental role in developing this rescue plan," said Sen. Olympia Snowe, R-Maine. Geithner said he was at the "center" of the efforts to stem the crisis. He said he urged aggressive action beginning in early 2007, when the first sparks of the financial fire were seen. But Geithner suggested he had much more influence on central-bank efforts, although he urged Paulson to seek new power.
Geithner acknowledged that the concept of a "bad bank" was under consideration. Sen. Charles Schumer, D-N.Y., said experts have told him that such a concept would cost more than $3 trillion.
In addition to the bailout and the tax problems, Geithner sought to dampen concerns from deficit hawks about forecasts that the federal government's budget deficit is expected to balloon to more than $1 trillion in the current fiscal year. He said the budget would have to tamed on a five-year horizon.
http://www.marketwatch.com/news/story/Ne...7672D719B26E%7D Get ready for trillion dollar deficits for years to come. \:\(