Where did the funding come for the $700 billion in Bailout Dollars?

Short Run Printing

I had the idea that the funding would come from additional taxes, and that may ultimately be where it is paid from. But in the short run, the US government found some source of liquidity to tap and I'm just curious if they sold bonds on the international market, thereby increasing the US's national debt bill. Or did they just print up a bunch of money from the Federal Mint and hand it out, thereby diluting the underlying value of the dollar and inviting runaway inflation?


3 Responses to “Where did the funding come for the $700 billion in Bailout Dollars?”

  1. David C — May 8, 2009 @ 7:50 pm

    Add it to our 8 trillion dollar debt. There is no deficit limit.. Spend.. spend… spend..

  2. Spock for President — May 8, 2009 @ 7:50 pm

    It is pretty much like this. Say you work at a bank and you go into your account and add some zeros. Since you own the bank, no one comes to arrest you.

  3. Beth S — May 8, 2009 @ 7:50 pm

    Print!

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