Taxation & Estate Planning

Gov't Borrows Money to Give to Banks to Give to People who Can't Pay Back Current Loans???

By Deirdre R. Wheatley-Liss, Esq.

According to Yahoo News, the US government is borrowing an additional $27 BILLION dollars. This is because the business that is our country spends more than it takes in. President Bush also just signed the new housing law package. "As part of the housing measure, Congress voted to increase the national debt limit by $800 billion from $9.815 trillion to a new limit of $10.615 trillion."

So, the US government is borrowing money to give to banks, so that the banks (who ran out of money due to their own bad lending practices) can give money to borrowers, who already can't pay back the money they already borrowed?

What??? And who is going to be responsible at the end of the day? You, me and anyone else who pays taxes, as that is the only way to raise revenue.

See Government announces plans to borrow $27 billion

Full post as published by New Jersey Estate & Elder Planning Blog on July 30, 2008 (boomark / email).