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The '08 US Financial Crisis, Background & Its Global Impact.

By the time the Bush rescue plan has been passed - assuming this will involve $700 bn, though many say its final shape could be different - US government spending just to delay the worst of the financial crisis by a few years, if not less, in 2008 alone would have reached $1.587 tn. This would have included $400 bn to back-stop money market accounts, the $170 bn "stimulus" package passed earlier in the year, $85 bn for AIG, $30 bn to bail out Bear Stearns, and $202 bn to bail out Fannie Mae and Freddie Mac - ie, about $15,000 per US household which is roughly the amount to buy a decent used car or a fuel-efficient new one.

Worried US investors and policy-makers have become ...

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