Treasury Plan Could Cost $1 Trillion

In an effort to continue to make money flow easier and quicker, the Obama administration’s latest attempt to tackle the banking crisis and get loans flowing to families and businesses will create a new government entity, the Public-Private Investment Program, to help purchase as much as $1 trillion in toxic assets on banks’ books. The new effort, to be unveiled Monday, will be followed the next day with release of the administration’s broad framework for overhauling the financial system to ensure that the current crisis — the worst in seven decades — is not repeated. A key part of that regulatory framework will give the government new resolution authority to take over troubled institutions that would pose a threat to the entire financial system if they failed. This move should help in the short term, but all of these spending programs are creating a HUGE debt service on our future. We are running the risk of not just inflation down the road, but hyper inflation.  This is the best time to lock a loan for 30 years no questions asked.