The Bailout In Context

[Herc_Dude]

http://www.ritholtz.com/blog/2008/11/big-bailouts-bigger-bucks/

As the author writes, people generally have a hard time wrapping their minds around such large numbers. The article compares the inflation-adjusted costs of many government programs, endeavors, etc to what this bailout will cost us. Here is a hint - it's a lot. Awesome.

 

[BackOrdered]

For the lazy:

• 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
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion

Bailout: $4.6165 trillion dollars

source: http://www.ritholtz.com/blog/2008/11...-bigger-bucks/

 

[Herc_Dude]

Yeah, I had that up in my original post. I am not current on copyright law so I played it safe. Didn't want head-hunter HeyJoe out for my throat.

 

[Flash]

It is a flawed list, the figures would be more realistic if they were measured against the past and present GDP/GNP, federal budget or other similar figure, since those figures have grown exponentially in the meantime as well.

Just like the deficit, the dollar figure has grown quite a bit in the past few years but as a percentage of our GDP it has not gone up at the same rate and is still below the WWII rate.

 

[SkywardET]

Flash, I'm sorry sir, but this is just criminal.

 

[pourts]

The thing that you have to remember is that the $700 billion is not just evaporating, but buying assests. Once everything settles down, the government may end up making money.