How much is US $700 Billion!!??

[HL]

Just how much is $700 billion?

A lot, or not that much. There are about 300 million men, women, and children currently living in the United States, so the bailout is equal to roughly $2,300 per person.

That's right around what we each paid, on average, for gas and oil in 2006 ($2,227) and a bit less than our average personal tax burden ($2,432).

[Assasin]

Anyhow you cut it is a lot of money.

Remember this is the same admin who have a problem with free healthcare


The admin who cut student loans

Who have cut certain services for ex military people.

The same admin who make saving social security such a big problem.

Now Wall street want it and it is not a lot of money? A bet if you if the Democrats did ask them to pay it in taxes you hear how much money it is.

[HL]

A think you should run for mayor or councilman in your area Assasin.

Fa real!

Everyday the reality of the impact on the economy is getting worsa and worsa...

McCain MUST be linked with this failure at every turn.

[Karl]

...and if bears Stern and AIG is thrown in it is just about 900+ billion! ...and tru mi it may end around three trillion or more when it all shakes out!

[Islandman]

A few points to note on this:

Firstly, only about 140 million of that 300 million pay any federal income tax.
Some are children, some are illegal and some earn little or nothing and pay no taxes. So a more accurate way to calculate is 700 million / 140 million which is getting close to $5000 per taxpayer.

Second, the current US debt is already moving towards 10 trillion and growing!

That said, the consequences of not doing anything is worse. But I agree with Congress that these guys should not be given a black check to spend with impunity.

[Assasin]

well McCain has legislate for less legislation all the way. His record is there.

The funny thing is reading on the run up to the great depression is sounded similar by letting Wall Street run wild.

I believe in capitalism but there has to be a balance.

After getting bored with computers, I decided to do advance degree in Business and Policy studies. I am almost at the end, even though it has been ruff with a young family.

I personally would rather be the community activist than the mayor

Put it this way, in a little while we have work to do.

[HL]

community activist don't make any money assasin. Just ask Obama.

Better you become a councilman.

[Islandman]

The funny thing is reading on the run up to the great depression is sounded similar by letting Wall Street run wild.

The cause is very similar but the govt response has been very different. In the 1920s the response was to let the banks fail and also to contract money supply , in todays world they will not allow that to happen.

Bernanke is actually one of the most knowledgable people on the Great Depression. He is totally of the opinion that the Feds caused it to be a lot worse than it should have been by contracting money supply instead of increasing it. His view, which is the popular one these days among US economists, is that if the choice is between inflation and a deflationary depression, inflation is the better option.

[Me]

700 Billion is a whole heap yes, but still small compared to few things.

Fannie and Freddie guarantee 6 trillion worth of mortgages (although the majority of those are of a high quality).
The derivative contracts base on the subprime mortgages is a lot larger.

As bad as the 700 billion sounds, if the government buys many of these securities at a reasonable price and holds them to maturity, the government will actually make quite a bit of money on that 700 billion. However, the key is the price. If they allow the Wall Street folks to rig the reverse auction process then that is where the mess is.

[Karl]

A few points to note on this:

Firstly, only about 140 million of that 300 million pay any federal income tax.
Some are children, some are illegal and some earn little or nothing and pay no taxes. So a more accurate way to calculate is 700 million / 140 million which is getting close to $5000 per taxpayer.

Second, the current US debt is already moving towards 10 trillion and growing!

That said, the consequences of not doing anything is worse. But I agree with Congress that these guys should not be given a black check to spend with impunity.

Blank check?
Right?
If not, what is a black check?

btw -
US Economy -
http://en.wikipedia.org/wiki/Economy..._United_States

[Islandman]

That is my feeling, that they will end up buying the garbage for 70c on the dollar after the public cool down and forget about this.

As for the derivative contracts.....the estimates I have seen range from 50 trillion to 500 trillion. For a comparison the world GDP is about 65 trillion.

WOW...No wonder Buffet calls them financial weapons of mass destruction.

[Islandman]

Yes, blank check sorry.

[Karl]

additionally - The Obama camp finds it convenient to talk of "big bail out" as it helps that the republican president was(is) in office as this storm was seen to have brewed (matters not when it really started to brew) and John McCain can be linked to this president.

The McCain camp finds it convenient to talk of "big bail out' as it is a position he has been against...it seems "like forever". Notice the McCain camp's "I am a deregulator however the circumstances dictate that in this instance I must demand sttrong regulation, transparent accountancy and no large morally unacceptable compensation over and above what the highest public official (i.e. the president) receives".

What both are doing is a disservice to "the man in the streets"...particularly as they both know the instinct of the "small man" is reactive "anti-big man/big business" mantra. That visceral reaction always (and I digress - Michael Manley knew and used that in his rhetoric and to his advantage) - is political appealing and therefore gets votes. This grabbing for votes prevents both camps from explaining to the man in the street that failures at the top mean trickle-down and in some cases immediate failures in the middle and at the bottom i.e. the so-called "bail out" is in the interest of the "man in the streets". Big businesses are connected at the hip with small businesses and both to the "man in the street". It is "push or pull in one area of the economy...bulges appear elsewhere"...there are ripples throughout the entire economy. Enough slowdown...enough money not entering circulation...jobs loss, less economic activity...translates into less produce & products sold...fewer jobs...more closures of small, medium and small businesses...less taxes - income, sales, property, etc...less government spending...tighter credit, etc....job losses...and round and round we go and down and down we go!

...politics as usual - as Peter Tosh said, the ****************sim and Politriks!

[Assasin]

HL you talking 1960 activists.

Take a look at AL Sharpton for example. He has a radio show, get paid TV appearances, paid speaches and is involve with many coporate deals and movies.

The community activist can be advisor or a council member. The mayor in my view is limited to outing fires and is limited to a certain boundry.

[Karl]

That is my feeling, that they will end up buying the garbage for 70c on the dollar after the public cool down and forget about this.

As for the derivative contracts.....the estimates I have seen range from 50 trillion to 500 trillion. For a comparison the world GDP is about 65 trillion.

WOW...No wonder Buffet calls them financial weapons of mass destruction.

...pause...

mi bad tink mek joke!

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