Just think of what could have been accomplished had we chosen to deploy 10 Trillion dollars toward really making our country work and the world work for all humanity instead of propping up a house whose foundations have been found to be rotten to the core. Time for a makeover of the world's entire financial system from the ground up...... JA
According to Barry Ritholtz, the blogger behind "The Big Picture" and CEO and Director of Equity Research at Fuison IQ, an online quantitative research firm, "If we add in the Citi bailout, the total cost now exceeds $4.6165 trillion dollars. 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
• 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
Data courtesy of Bianco Research
"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 II borne by the United States: $3.6 trillion, adjusted for inflation (original cost was $288 billion). Go figure: WWII was a relative bargain."
Ritholtz estimates "that by the time we get through 2010, the final bill may scale up to as much as $10 trillion dollars." "Bloomberg calculates the total amount the taxpayer is on the hook for is $7.76 trillion, or $24,000 for every man woman and child in the country. (Data breakdown is here)
On Nov. 24 2008 the US Treasury agreed to guarentee $306,000,000,000.00 of Citigroup's troubled assets. This was on top of the Treasury's recent cash infusions of $45,000,000,000.00 into Citigroup. According to Michael Lewis and David Einhorn's 1.4.2009 NYT OpEd piece - " The End of the Financial World as We Know It " , the bailout of Citigroup equated to almost 2 percent of gross domestic product, and about what we spend annually on the departments of Agriculture, Education, Energy, Homeland Security, Housing and Urban Development and Transportation combined.