the cost of the bailouts

[jk]

words fail me.

[we_are_toast]

Re: the cost of the bailouts

Do you know the cost? Does anyone?
Does anyone know where the money is going?
Does anyone know how many new ways the Fed and Treasury has found to spend money?
Is there any sign that any of it has done any good?
Are you ready for Pres elect Obamas new approach to bailouts with just as much cost?

Does anyone have any F*$%&(* idea how in the universe you can possibly borrow and pay these sums back?!

[jtabeb]

Re: the cost of the bailouts

Does anyone have any F*$%&(* idea how in the universe you can possibly borrow and pay these sums back?!

I know, I know!!!!

You CAN'T!!!:eek:

[Jay]

Re: the cost of the bailouts

I know, I know!!!!

You CAN'T!!!:eek:

:eek:

[Rajiv]

Re: the cost of the bailouts

Bailout costs $8.5 trillion

US Federal Government has pledged $8.56 trillion in economic bailout for financial institutions so far.

With the credit crisis continuing to worsen, the US federal government is pledging a seemingly endless amount of money to shore up failing institutions hit hard by toxic assets. Federal government pledges now top $8 trillion with the most recent $800 billion announced Tuesday. The Real News Network spoke to journalist and author Nomi Prins.

Nomi Prins is a journalist and Senior Fellow at Demos. She writes about politics, money and relationships. Nomi is the author of Other People’s Money: The Corporate Mugging of America and Jacked: How "Conservatives" are Picking your Pocket . Before becoming a journalist, Nomi worked on Wall Street as a managing director at Goldman Sachs, and running the international analytics group at Bear Stearns in London.

[jk]

Re: the cost of the bailouts

the graph below was - for reasons unkown- removed from my original post.

http://jessescrossroadscafe.blogspot...nal-greed.html

edit: for some reason fred keeps deleting the graph. the link above has been corrected to be more specific

[sunskyfan]

Re: the cost of the bailouts

words fail me.

Oh ... come on .... the US Government might even make money in this situation! :rolleyes: I distinctly remember Jim Kramer telling me that.

[Rajiv]

Re: the cost of the bailouts

Posting the itemized breakdown here



and the historical comparison here

[c1ue]

Re: the cost of the bailouts

Well, 'making money' might well be true depending on the definition.

If the definition is X dollars goes in, and X+Y dollars comes back, this absolutely can happen.

Of course, X+Y might not buy what X used to...

We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power

Alan Greenspan
February 15, 2005
In testimony before Congress concerning a Social Security reform proposal

[jk]

Re: the cost of the bailouts

for some reason fred keeps deleting the graph i try to post. here's a link: [once there, click on the figure to enlarge it]

http://jessescrossroadscafe.blogspot...nal-greed.html

this compares the cost of the bailout to the cumulative cost of a few items like the vietnam war, the apollo project, the invasion of iraq, the korean war, and few other minor items. it also compares the cost to the total spending for wwii, inflation corrected.

[Jim Nickerson]

Re: the cost of the bailouts

http://www.investmentpostcards.com/2...008/#more-3104

“Whenever I discussed the current bailout situation with people, I find they have a hard time comprehending the actual numbers involved. That became a problem while doing the research for the Bailout Nation book. I needed some way to put this into proper historical perspective.

“If we add in the Citi bailout, the total cost now exceeds $4.6165 trillion. People have a hard time conceptualizing very large numbers, so let’s give this some context. The current Credit Crisis bailout is now the largest outlay in American history.

“Jim Bianco of Bianco Research crunched the inflation adjusted numbers. The bailout has cost more than all of these big budget government expenditures combined:

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• ietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion
TOTAL: $3.92 trillion

“That is $686 billion less than the cost of the credit crisis thus far. The only single American event in history that even comes close to matching the cost of the credit crisis is World War II: Original Cost: $288 billion, Inflation Adjusted Cost: $3.6 trillion. The $4.6165 trillion dollars committed so far is about a trillion dollars ($979 billion dollars) greater than the entire cost of World War IIborne by the United States: $3.6 trillion, adjusted for inflation (original cost was $288 billion).

“I estimate that by the time we get through 2010, the final bill may scale up to as much as $10 trillion dollars …”
Source: Barry Ritholtz, The Big Picture, November 25, 2008.

[GRG55]

Re: the cost of the bailouts

words fail me.

Here's some more pictorials on this subject. For those who aren't depressed enough already...

[c1ue]

Re: the cost of the bailouts

What's really funny?

Macro Man's "A Modest Proposal" seems to be an actual plan in implementation...

http://macro-man.blogspot.com/2008/0...-proposal.html

MODEST_PROPOSAL.png

Modest Proposal: Net $11.5T

Bailouts so far: $8.5T

Only $3T more to go!

[GRG55]

Re: the cost of the bailouts

What's really funny?

Macro Man's "A Modest Proposal" seems to be an actual plan in implementation...

http://macro-man.blogspot.com/2008/0...-proposal.html

Modest Proposal: Net $11.5T

Bailouts so far: $8.5T

Only $3T more to go!

No worries. Plenty of time yet. It's only Thursday morning...:rolleyes:

[Kimmons]

Re: the cost of the bailouts

This whole thing is staggering. I see people out going about their daily business like everything is normal..., they are in for a rude and uncomfortable surprise, I'd warn more of them, but there's no sense in looking "crazy"