Jump to content



Photo

Bailout Cost = Korean, Vietnam, Iraq War, New Deal and NASA


  • Please log in to reply
5 replies to this topic

#1 Rogerdodger

Rogerdodger

    Member

  • TT Member*
  • 26,861 posts

Posted 25 November 2008 - 09:52 PM

Barry Ritholtz, a financial blogger, has run the numbers on the bailout, and he cites a guy named Jim Bianco of Bianco Research who crunched inflation-adjusted numbers and compared some previous federal government expenditures to the current total of the bailout. Now, depending on where you look, the total bailout money to date is either $6 trillion or $7.4 trillion. These guys, they just ran it up to $4.6 trillion, and it's more than that now. It's at least two trillion more than that. Now, the current national debt is like $7 trillion. Maybe it's higher than that. But regardless, that's irrelevant here.
This current bailout, calculated only up to $4.6 trillion, has cost more than all of the following government expenditures combined. Are you ready? The Marshall Plan. The Louisiana Purchase. The race to the moon. The S&L crisis. The Korean War. The New Deal. The invasion of Iraq. The Vietnam War. And NASA.

All of those combined, in inflation-adjusted dollars, equal $3.92 trillion in today's dollars. This bailout is more than all of those combined. Now, would you like to hear the inflation-adjusted dollar amounts for each of these line items? The Marshall Plan, back when we did it, cost $12.7 billion -- and it rebuilt Europe after World War II. If we did the Marshall Plan today, it would cost $115.3 billion. We rebuilt European for $115.3 billion in today's dollars; and we have just spent, according to these guys, $4.6 trillion on bailouts of the US financial industry. The Louisiana Purchase, in today's dollars, would cost $217 billion.

The race to the moon, in today's dollars, would have cost $237 billion. That's more than the Marshall Plan and Louisiana Purchase in today's dollars. The S&L crisis. We bailed out the S&Ls and fixed that. In today's dollars, it would cost $256 billion. Back then it was $153 billion. The Korean War, $54 billion back in the fifties. Today's cost would be $454 billion. The New Deal. Today's dollars, estimated to be $500 billion, if we did the New Deal today. That's half a trillion. We have spent $4.6 trillion. The New Deal was half a trillion in today's dollars. We have spent $4.6 trillion, and probably more than that, at least six or seven. The invasion of Iraq, $597 billion in today's dollars. The Vietnam War. Back in the era of the Vietnam War, it cost $111 billion. To do it today would cost $698 billion. And NASA. This is not the race to moon. This is the whole NASA budget. Over the years, $416.7 billion. In today's dollars, it's $851.2 billion. This is an annual cost for NASA.

So, all of these add up to $3.92 trillion.
The only thing that comes close is World War II, and even that cost less than what we have spent. Again, I have to emphasize, this is using a figure of $4.6 trillion as the bailout today. It is far, far more than that.

#2 bullshort

bullshort

    Member

  • Traders-Talk User
  • 758 posts

Posted 25 November 2008 - 11:21 PM

Forget it. A cup of coffee cost 10 cents 50 year ago. What is it today - $2 bucks in Tulsa, $4 in New York? The dollars are irrelevant. The dollars change with inflation/devaluation of the buck. The bailout cost could be $50-, dare I say $100 trillion. In 5 years (or much less) a cup of coffee will cost $100 . . . okay, $40 in Tulsa. Can we not all see what is going on here? By the way, the Dow will reach 36,000, so don't call me a doomer/gloomer. :lol:

#3 Rogerdodger

Rogerdodger

    Member

  • TT Member*
  • 26,861 posts

Posted 25 November 2008 - 11:27 PM

Hey buddy, can you spare a trillion for a cup of Java? :o

Support The Money Hole!

#4 bullshort

bullshort

    Member

  • Traders-Talk User
  • 758 posts

Posted 25 November 2008 - 11:55 PM

Print enough money, bundle it up in a ball, launch it into orbit around the earth. Now we'd have a new place to inhabit, also solving the overpopulation problem, etc. But how soon do they get ATMs there? Sorry, Roger, I'm losing it, having fun, but losing it. :P

#5 Rogerdodger

Rogerdodger

    Member

  • TT Member*
  • 26,861 posts

Posted 26 November 2008 - 12:04 AM

FED PUMPS $800B MORE...

Federal deficit could hit $1 trillion this year...

Sovereign wealth funds flee the West...

#6 humble1

humble1

    Member

  • Traders-Talk User
  • 5,959 posts

Posted 26 November 2008 - 12:45 AM

rd: you worry too much. be happy; count your blessings. Vita Brevis! :)