The International Monetary Fund has just estimated the American taxpayer’s tab for all of Washington’s bailouts, guarantees, backstops and other support of the financial system.
It’s $1.9 trillion over the next five years. $6,200 for every American man, woman and child.
In a sure sign the torch of world leadership is passing from American hands, Washington protested the estimate as way too high, faulting the IMF’s methodology. The IMF assumed 10% losses for the assets the Fed has taken onto its books. It also assumed the FDIC will have to get additional funding from Congress to rescue depositors at insolvent banks.
We, on the other hand, won’t be surprised if the IMF’s methodology turns out to be conservative.