I found this info via BoingBoing.net who point out that "the bailout costs more than Marshall Plan, Louisiana Purchase, moonshot, S&L bailout, Korean War, New Deal, Iraq war, Vietnam war, and NASA's lifetime budget -- combined!"
And, yeah, that's adjusted for inflation.
The source is Barry Ritholtz who is writing a book on the bailouts. Bianco Research crunched the numbers.
I guess Ritholtz can add some more items to the combined list now that we're apparently bailing out the domestic auto industry.
Awesome. Anything else we can bailout?
Link to Ritholtz's post.
Thursday, December 11, 2008
How costly is this bailout? Some perspective
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7 comments:
Actually looks like we may NOT be bailing out the auto industry. The cost of not bailing them out (which is a mere pittance compared to the finance industry bailout) will likely bring the market crashing even further and hasten a deeper recession.
My guess is those same people who are balking at the auto bailout will be the goats in a few months as people are struggling even more for jobs and to keep their heads above water.
Personally I think if they opt not to do it, it bodes very poorly for the next 12-18 months.
I don't like the notion any more than the next guy of having to be in this position, but having said that and guessing it will not pass, "fasten your seatbelts, because it is going to be a rough and tumble ride".
Did you ever see a trailer for a movie that began with "From the people who brought you blahblahblah" and you thought to yourself "But, I hated blahblahblah"?
What does it mean when we say we're bailing out the domestic car companies? I assume that means that ultimately the Federal government will be in charge of the domestic car companies.
That makes me think of "from the people who brought you the credit crisis." I can't say I'm a fan of their other work.
With the failure to pass any bailout(loan) for the Big 3, the Senate Republicans have once again demonstrated a total lack of understanding about the economics of the decision.
What we will see today is a massive selloff of the stock market that will pale in comparison to the proposed bailout. Not being able to articulate and sell an alternative plan might wind up costing the USA dearly. The alternative is for the President to get the money (about 2 % of total) from the TARP fund which still may happen but not before a huge hemorrage of the financial markets.
I believe the Senate Republicans believe that just letting one or more of the Big 3 go into Chaper 11 and reorganize is the solution, but what they fail to realize is that Chapter 11 is based on the notion that the failing company can get bridge loans. No bank or lending institution in this economic enviornment would be willing to take on the debt, thus the final solution is really Chapter 7 which is dissolution which starts a bigger unraveling of the now shaky financial system.
It is still possible (and perhaps likely) that the President will authorize the loan from the TARP funds which he has the power to do.
The Senate , however, may have pulled the plug on a drain that may now be unstoppable.
Is Gary even blogging anymore? Does anyone still listen to the am show since they sold-out the former "Gary Sutton Show"?
I think this is Gary's busy time of year and, heck, my free time is always meager so I haven't been able to keep up as much as I'd like.
I also suspect that Gary is still adjusting to the new schedule.
I imagine him going home after the show and then passing out. A small string of drool is evident 'pon his chin as he naps before getting up again to immerse himself in news for the next day.
Then he gets up way early the next day, shouts "To the Garymobile!" and races in to WSBA. I believe the Garymobile also shoots flames out of a rocket in the back.
Anyway, I understand that we'll have a new contributor here soon and I plan to post more often as well.
Let the market forces take care of GM. Its a bitter pill for sure, but what did we think that nothing would happen when we allowed foriegn companies to bring their infrastructure into this country and use our labor? Thats not counting jobs your neighbor sent away from you. It's soooo all over, and they only way out is nationalism, instead of multi-culturalism. We used to be able to shape up, get squared away, do with out for a common cause. But we dont have the God, or values, or anything else in common any more because you foolish Americans have drifted into the wiles of complacency, not just forgetting history but actually rewirting it for your own foolish dreams.
America has cried out this past election for a big change...too bad their not going to get it. President Obama will be just another politician.
If the people who think they need GM are willing to sacrifce for it. good. they will save it. We the people will not.
Did this blogsite croak? I figured that would probably happen when Gary's 9 to noon show got yanked. Sad for many of us who followed and listened to his show.
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