Dow Jones Sinks 486 after election!

The U.S. government has just launched the greatest borrowing binge of all time — an orgy of new debt offerings that will almost surely kill the bond market, drive interest rates into the stratosphere and pound Wall Street to a pulp.

Just this week, the U.S. Treasury announced that between last month and the end of the year, it will borrow a total of $550 billion — more than the entire deficit for ALL of fiscal 2008.

And even that record-smashing amount is only the tip of the iceberg: Goldman Sachs analysts just announced that, to finance an $850 billion federal deficit ... to buy $500 billion in bad assets ... and to roll over $561 billion in maturing Treasury securities, Washington will have to borrow TWO TRILLION DOLLARS!

Paying the piper for U.S. Gov’t Bailouts:
$2.7 TRILLION
in loans and commitments — and more to come!
TARP $700 billion
Bear Stearns $29 billion
Detroit Big Three $25 billion
AIG $123 billion
Fannie and Freddie $200 billion
Mortgage-backed secs. $144 billion
FHA Rescue bill $300 billion
JPM for Lehman $87 billion
Fed’s TAF program $200 billion
Commercial paper $50 billion
Fed currency swaps $740 billion
Total: $2.7 trillion
Worse: That $2 trillion may STILL not be enough: Just to cover the bailout loans, investments and commitments the government has announced SO FAR, the total bill comes to a whopping $2.7 trillion.

And that $2.7 trillion doesn’t even begin to address Washington’s next attempts to fight this crisis:

As the U.S. economy continues to crater ... as federal tax revenues continue to plunge ... and as Washington continues to run amuck with new bailouts ... Washington could easily add another $1 trillion or even more to this borrowing spree!