The Big Bailout – what it means for credit cards…

The “mother of all bailouts” is what they’re calling it – the $700 billion bailout of the U.S. financial market. Under the current plan, the government will buy back distressed assets from private holders on Wall Street.

Now how much the cookie crumbles depends on what types of debts are included. Will it only be mortgage-backed securities? Or will they include credit card debt, which is packaged up and sold on Wall Street the same way mortgages are.

The plan was supposed to be only for “mortgage-related” assets, but a recent draft included “troubled assets” and of course with that sky is the limit – it could include virtually any type of troubled loan.  If this happens, the ultimate cost to the taxpayers may be far more – in the trillions.

Either way, roughly 87% of Federal tax revenue comes from individuals, so you will be the one paying 87% of the bill for these corporations.

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