2008-11-27

Public Debt plus bailout

According to Barry Ritholz, the current cost of the bailout has reached $4.6165 Trillion.

Now at some point I would expect those figures to end up being added to the public debt. So far, though, it hasn't.

If we add the bailout figure to the most recent level of public debt, we get:

$4.6165 Tr + $6.40Tr = $11.0165 Trillion

or 76.40% of GDP.

Let me just repeat that:


PUBLIC DEBT + BAILOUT = $11.0165 Trillion

or 76.40% of US GDP


Sell your US Dollars. Now.

3 comments:

Mberenis said...

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JD Walters said...

I don't think I'm going to go all Jim Cramer on the US dollar just yet. For one thing, the GDP/debt ratio is still low compared to that of other developed economies, some of which (like Japan) have currencies that still fare very well on international money markets. Also, the bailout is not just debt that the government has taken on, at least if this CNN article is to be believed. A key quote:

"...it may not be as bad as it seems: A substantial portion of that $7 trillion is investment, the government hasn't spent close to the total allotment yet, and the taxpayer may come out on top in the end.

"It's a lot of money, but it's not like it's out the door, never to be seen again," said Dean Baker, co-director of the Center for Economic and Policy Research. "A lot will be lost, but we're not going to lose anywhere close to $7 trillion."

The government has invested about $3 trillion of the total allotment, and it has already received much of that investment back. For instance, the Fed has gotten back about $1.2 trillion of the $1.6 trillion it has lent banks in its ongoing Term Auction Facility."

Mberenis said...

There is more to this bailout than what everyone thinks. The bailout is already helping us! But no one realizes it yet. Most people don't realize how much money there is out there. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, lenders are bending over backwards to bail you out too. Believe it or not, there is people getting tons of cheap money nowdays to start businesses, buy homes, pay off debt, and more. Bailout is for You Too!