As expected and predicted by Roubini, even people on this blog, the Wall Street Journal is reporting this little gem:

U.S. government officials seeking to revamp the financial bailout have discussed spending another $1 trillion to $2 trillion to help restore banks to health, the Wall Street Journal said, citing people familiar with the matter.

The paper said the Barack Obama administration could announce its plans within days but has not yet determined the final shape of its new proposal, and the exact details could change.

If this Wall Street Journal Report is true, we are now talking of $4 trillion dollars of deficit spending with most of it going to insolvent banks just to prop them up.

In reading this, if you are pulling out your hair screaming this is obscene you're not alone.