GLENN: The Drudge Report has Panic of '08. This story changes everything. This story is the story that you -- if this doesn't open your eyes, nothing will. This is the story that you need to send to all of your friends, anyone who has said to you, why are you -- oh, stop panicking; we've been through this before; oh, it's no big deal. This story will prove them wrong and if they don't get it on this story, they never, ever will. Most Americans will not get it even now. You will. Panic of '08, here's the headline in red on the front page of Drudge. The U.S. Government is prepared to lend more than $7.4 trillion on behalf of American taxpayers. That is half the value of everything produced in the United States last year. Let me repeat. The U.S. Government is prepared to lend more than $7.4 trillion on behalf of American taxpayers. That is half the value of everything produced in our nation last year. They are doing it to, quote, rescue the financial system since the credit markets seized up 15 months ago. The unprecedented pledge of funds includes $2.8 trillion already tapped by the financial institutions.
Remember I said about four weeks ago it's not $700, stop saying $700 billion, stop focusing on that; that number is $3 trillion? That comes from my researchers just trying to paste things together, just trying to figure out what they've actually done. We came up with a number of $3 trillion. Now Bloomberg reports it's $2.8 trillion. Quite honestly I'd count on our numbers. This dwarves that approved by lawmakers, the $700 billion Troubled Asset Relief Program. Key phrase: The equipment of $7.4 trillion dwarves the only plan approved by lawmakers, The Treasury Department's $700 billion Troubled Asset Relief Program which, by the way, they decided they weren't going to do. The only thing that our representatives agreed to do, they didn't do. The price tag for what we agreed to do was $700 billion. They have just spent $2.8 trillion and today they have agreed to $7.4 trillion. The Federal Reserve's lending last week, tell me that there's a problem with lending in this country. The Federal Reserve's lending, they lend to banks, was 1900 times the weekly average for three years before the crisis.
Okay, so what does all of this mean? I am no longer going to even listen to anybody who says to me, "Oh, that's crazy; that will never happen." I have been saying these things for two years. I've been talking about the perfect storm for five years. It has come to shore and everyone has said to me, and even I have said on the air, "You're right, it is crazy; I hope these things don't happen." I have had dinner after dinner, I've had meeting after meeting, I've had conversations on and off the air with some of the greatest minds around today and they have all said the same thing: Glenn, well, so many things have to happen. And I said no, the only thing that has to happen is people have to continue to be blind. The people who set this up are the people -- and I don't mean set it up like it's a Star Chamber. The people who designed this financial system are arrogant. They keep saying, "Well, this will never happen, well, that's where we have this valve and this valve." If you use the common sense of a self-educated guy, of a farmer, of a guy who just runs his household, if we use the common sense that you have, if you stop looking at the global economy like magic and you start looking at it just like a macro version of your house, you will understand it won't work! No matter how many things that you do, how many tricks you try, no matter what you name things and how many acronyms you give things so people can't understand it, it still boils down to, it doesn't work.
So I have to ask anyone who's within the sound of my voice. I have said to you, please prepare, and the biggest problem with it is people will say, "Oh, he's just doom and gloom. Oh, he's just, he's crazy. Oh, those things aren't going to happen." And I said to you, Stu, how many -- I said four months ago and you said it was a lot longer than that. Do you remember how many months ago? It was six months ago, a year ago? Somebody can look it up. I said the Dow is going to be at 7500. People said to me at the time, "That's crazy, Glenn." I think at the time I said it was at 13,000. "That's crazy. Do you know what it would do to the economy?" I said, "Yes, you're missing the point. Yes, I do understand. I know what that means." Well, we hit 7500 last week. We're going to hit 5,000, not because of anything else other than this system is not going to stand. We're not allowing the purge of the system. We're propping up -- we haven't learned our lesson from the Nineties and the dot-com bubble. You are creating a money bubble. First it was the dot-com bubble. It popped because it wasn't real. And to save the dot-com bubble and to save us from all of that pain of what that would cost, what we did is we created another bubble. By pumping more money in, making it easier to get loans, we pumped another, more money into it and people went out and they bought stuff. So we created a housing bubble and a credit bubble. Well, now that that has popped, what are we doing? We're creating another bubble but, gang, it's the last bubble. It is the money bubble. We are pumping money into the system.
Now, they will tell you that $7.4 trillion, that's just pledged money, that's just to give people confidence. Understand that we were at the top -- do you remember two years ago, three years ago, five years ago I was trying to get a hold of David Walker to find out about the actual national debt and how on the edge we are on the national debt? That's when we knew at the time we had $7 trillion in debt and at the time I think $45 trillion on Social Security and Medicare. We've added to that. Now we have a $10 trillion debt, and the same people that told us the debt is going to kill us, the debt, we've got -- we can't fight this war, we can't afford these things, look at the debt, the debt, the debt, are the same people, both Republican and Democrat now that are telling us the debt doesn't matter. The debt matters! The debt matters in your house. Stop looking at it as magic tricks.